Renewables: Only 280 MW of PPA contracts signed in Europe in May

According to Swiss consultancy Pexapark , only 280 megawatts (MW) of renewable power purchase agreements (PPAs) were signed in Europe in May. This is the lowest capacity recorded since 2020, down nearly 80% from April. The total number of agreements also fell 45% month-on-month to 12, a level similar to that seen for much of 2022.

Only three countries signed more than one PPA in the month: the United Kingdom leads with four agreements for a total of 113 MW, followed by Ireland (two agreements, 49.3 MW) and France (two agreements, 26.9 MW). Corporate contracts accounted for the largest share (184 MW), compared to just 48 MW of PPAs signed by utilities.

PV PPAs dominated, with 174 MW across nine contracts. The largest deal was between British state-owned company Network Rail and French utility Edf Renewables : a PPA for 64 GWh per year of solar power over 14 years, or around 65 MW according to Pexapark estimates.

Another significant PPA signed in the UK comes from pub chain Marston , which will install solar across 120 sites under a model funded by investment firm Atrato Onsite Energy.

French telecom group Iliad signed four of the 12 total PPAs in May, three of which are related to photovoltaics, for a total of 60 MW. The agreements are spread across three countries: two in France , one in Poland and one in Italy , the same countries with which Iliad had already signed contracts in the previous months. In February, the company had signed almost 90 MW of solar PPAs with Engie (France) and Statkraft (Norway).

In total, according to Pexapark, the Iliad group has signed eight contracts in 2024 for a total of 166.2 MW.

Despite the decline in volumes and number of deals, the European composite PPA price increased slightly by 1.2% compared to April , reaching an average of €49.3/MWh ($56.5/MWh). Poland recorded the largest increase (+4.6%), while France saw a decline of 1.3%. According to Pexapark, the price increase in Poland is due to the recovery of electricity futures and an improvement in market sentiment.