Pexapark reports 1.5% decline in European PPA prices in June

Facebook
Twitter
LinkedIn
Reddit
Email
Solar-wind hybrid project
In June, Microsoft signed the two largest deals in Europe by capacity of power contracted. Image: EDP Renewables.

Swiss analyst Pexapark has published its latest report into the European power purchase agreement (PPA) space, noting a 1.5% decline in the average price of a PPA signed in Europe, from the end of May to the end of June.

Pexapark’s figures cover all power generation technologies, and this fall in prices is echoed by a more pronounced decline in solar PPA prices of 27%, reported earlier this week by fellow analyst LevelTen.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The analyst noted that hybrid PPAs were among the largest to be signed in June, in terms of electricity generation capacity. Pexapark noted that Microsoft signed the two largest deals in Europe, a 230MW agreement with Repsol and a 180MW deal with European Energy, both of which include portfolios featuring solar PV and wind power generation.

The latest figures also reflect a sustained decline in the volume of electricity generation for which deals are being signed. In June, developers signed deals for 944MW of electricity, down from 1,480MW in May and 1,550MW in April. There was a similar decline in the number of deals signed, with the 23 deals signed in June lower than the 32 agreed upon in May.

Pexapark also reports that power prices for renewable power deals, including solar and wind, are becoming increasingly separated from the baseload power price; while volume-weighted baseload price in Europe grew from €47/MWh (US$51/MWh) to €68/MWh (US$73.8/MWh) from April to June, renewable power only saw a €15/MWh (US$16.3/MWh) price increase.

Much of this stems from the increasing replacement of fossil fuel power generation with clean power, as the increase in renewable power generation, and decrease in fossil fuel power generation, means the performance of the latter will have less of an impact on the prices of the former.

“The result is that renewables could benefit only partly from the rise in average power prices,” wrote Itamar Orlandi, Pexapark senior commercial advisor, in the report. “The capture rate (or the market value of the produced electricity divided by the baseload power price) has fallen to just 70% from April to June 2024, from an average of 85% earlier in the year.”

25 November 2025
Warsaw, Poland
Large Scale Solar Central and Eastern Europe continues to be the place to leverage a network that has been made over more than 10 years, to build critical partnerships to develop solar projects throughout the region.
2 December 2025
Málaga, Spain
Understanding PV module supply to the European market in 2026. PV ModuleTech Europe 2025 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.
10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

July 30, 2025
US solar tracker manufacturer Nextracker recorded revenues of US$864 million and a gross margin of 32.6% in the quarter ending June 27, 2025.
July 29, 2025
US renewables developer Savion, a subsidiary of global oil giant Shell, has formed a new company to take ownership of its solar projects after development.
July 28, 2025
Solargis' Marcel Suri asks if the solar industry is using the best available science to characterise real-world solar resource conditions?
July 28, 2025
Australia’s Clean Energy Finance Corporation (CEFC) has announced it has invested a record AU$4.7 billion (US$3.09 billion) in large-scale renewables, energy storage, and transmission projects during the 12-month period ending 30 June 2025.
July 28, 2025
KKR has invested AU$500 million in Australia’s CleanPeak Energy to support the rollout of DERs such as rooftop solar PV and battery storage.
Premium
July 25, 2025
At the SNEC expo, Carrie Xiao took the temperature of the industry as it seeks a way out of cutthroat competition and squeezed margins.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK