European PPA prices rose 2.3% in July, with gains in Great Britain and Italy offset by declines in the Nordics, Spain and Portugal. Contracting remained active, with 24 PPAs totaling 1.1 GW and nine battery storage agreements representing 865 MW.
The European long-term power purchase agreement (PPA) market showed divergent trends in July amid energy market volatility, a rebound in gas prices and varying levels of renewable energy penetration. According to the latest index from Swiss consultancy Pexapark, the Euro Composite rose 2.3% to €45 ($52.5)/MWh, although performance varied by country.
Great Britain recorded the largest monthly increase, at 5.8%, followed by Italy at 4.3%. In both markets, higher PPA prices were supported by strengthening forward electricity prices, as gas markets continued to price in risk premiums linked to geopolitical instability.
By contrast, PPA prices declined in several markets with high levels of renewable energy penetration. Prices fell 6.3% in the Nordic countries, 3.9% in Spain and 2.9% in Portugal. The declines largely reflected the impact of high renewable generation on long-term electricity price expectations and, consequently, renewable energy contract values.
