Europe’s renewable Power Purchase Agreement (PPA) market saw nearly 19GW of new capacity contracted in 2024 driven by strong activity in Spain and Germany, according to Wood Mackenzie’s latest Europe Renewables PPA Tracker report.
Solar PV and wind projects made up around 80% of the contracted volume, with each contributing similar shares.
Spain and Germany accounted for 30% of total capacity, while Poland, the UK and Greece also ranked in the top five across corporate, route-to-market and utility deals, according to the study.
Dan Eager, research director for European power and renewables at Wood Mackenzie, said: “We're seeing a shift towards more sophisticated PPA structures.
"Hybrid storage arrangements that combine renewables and batteries are gaining traction, particularly among energy-intensive industries and data centres seeking 24/7 energy matching.”
Corporate PPAs dominated the market in 2024, representing over 70% of all agreements.
Eager said: “The technology and data sectors were the primary drivers of offtake activity in 2024. These power-intensive businesses are increasingly relying on PPAs to sustain their future operations and meet sustainability goals.”
The report noted that Iberian markets remain particularly attractive for both solar PV and onshore wind, despite ongoing pricing complexity caused by curtailment risk and negative pricing.
Wood Mackenzie’s 2026 outlook suggests continued opportunity for competitive PPA structures, especially in solar PV and select onshore wind markets.
The report also highlights the potential emergence of hydrogen PPAs, dependent on regulatory progress.
Eager added: “The growing influence of low-cost renewables on wholesale price formation is leading to increased volatility.
"Capture rates are set to decline over the next five to seven years, as demand growth lags supply and market flexibility is tested. Despite this, opportunities for well-structured, mutually beneficial PPAs remain.”
