The prices of European renewable energy power purchase agreements (PPAs) rose by 5.0% in September, according to monthly figures published by Pexapark.
PPA prices rose in most European markets, most notably in the UK, which saw the strongest monthly increase of 10.9%. Spain and Portugal experienced declines in prices, with average prices falling 3.5% and 1.4% respectively.
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The Swiss price intelligence platform company’s September analysis notes that its re-calibration of the Danish PPA fair values contributed to some of the statistical changes. In Denmark, the ten-year annual baseload fair values, starting in 2028, were lowered by around €5/MWh (US$5.6/MWh) as “offtakers widened the risk discounts embedded in their pricing.”
The composite PPA price figures have seen a rebound from this summer, reaching an average price of 48.34/MWh (US$54.12/MWh) in September, compared to €46.02/MWh (US$53.1/MWh) in August.
European offtakers signed 21 agreements in September for around 1.2GW of clean energy capacity. Of this, corporate offtakers accounted for 92% of announced capacity, and four utility-based PPAs were signed for around 103MW of renewable energy capacity.
Onshore wind and solar comprised 281MW and 276MW, while Google’s long-term 597MW PPA with the Finnish Loviisa nuclear plant accounted for 41% of all clean energy capacity.
The analysts note there was an uptick in the number of flexible purchase agreements (FPAs), with 16 announced in Europe for around 2.1GW of capacity, more than double the August 2026 figure.
In April this year, Pexapark analysts predicted UK gas prices to rise by 44%, compared to 23% in Germany, with the increases due to the effects of the Ukraine and Iran conflicts pressuring global energy indices in all energy sectors. The commensurate rises in both one-year and ten-year PPA prices—10.9% in the UK and 3.6% in Germany—is in accord with the company’s predictions, as global fuel price changes have parallel effects on renewable purchase agreements.
Pexapark also reported that there was a record three hybrid PPAs announced in September, including Zelestra’s hybrid PPA with steelmaker Salzgitter Flachstahl for 147MW of solar capacity and 79MW of co-located batteries charged from solar plants.
Norwegian utility Statkraft also agreed a seven-year hybrid PPA with Wattmanufactur for a 20MW solar farm and 10MW of battery energy storage systems (BESS), due to be operational later this year in Schleswig-Holstein, Germany. Also this month, Abei Energy and Shell Energy finalised an agreement for a hybrid deal on the Arcos de la Frontera project in Cadiz, Spain, which adds to the six deals the two partners struck between 2024 and 2025.
