Europe saw a record number of renewable energy PPAs contracted in 2023, with deal count and volume surging 65% and 40% year-on-year respectively, according to a report from Pexapark.
The company’s European PPA Market Outlook 2024 said that the past year saw a substantial 16,200MW of disclosed contracted volumes, a remarkable surge of over 40% from the year before. Deal count increased by 65% from 2022 – totalling 272 PPA announcements.
Continuously weathering multiple peaks and troughs, the market is now entering its ‘Golden Era’, the group noted.
Factors contributing to this optimistic outlook include decreased volatility vis-a-vis 2022’s peaks, a stabilising pricing environment, and growing maturity from both buyers and sellers in managing energy risks.
These conditions have unleashed a plethora of innovations and advancements in the European PPA Market, commencing a new chapter for the continent’s energy transition.
According to the report, market activity was driven by corporates, but the balance between such players and utility offtakes improved.
Corporates secured 11,950MW – 28% increase from 2022, across 218 deals.
This was underpinned by a significant deal count surge of 66% year-on-year. Utilities represented 23% of the volumes – an increase from last year’s 18% share, and 18% of deal count.
This translates to 4020MW – more than double the 1960GW of 2022, across 48 deals – a 60% increase from last year’s 30 deals.
Spain continued to lead the market both in volumes and deal count for the fifth consecutive year, with 4670MW. Germany climbed to second position in the market, with 2023 volumes at 3730MW.
Solar PV (1770MW across 18 deals) and offshore wind (1730MW across 14 deals) played an equal role in this achievement, bringing Germany’s solar sector back into the spotlight.