In Europe, 1.1 GW of Photovoltaic PPA Agreements Signed in February 24

European investors and developers signed 24 power purchase agreements (PPAs) for 1.1 GW of solar power in February, according to Swiss consultancy Pexapark. Italy stood out with five agreements.

February was “a month to remember in the European PPA market” according to the Swiss consultancy firm Pexapark which reports signatures for 54 PPAs with a total capacity of 3,046 MW.

The largest buyer in February was Google with 728 MW, while utilities were involved in only four of the deals made public for a total of 557 MW.

The contracts involve 14 countries with Spain leading in terms of power, 562 MW in six agreements, while Germany is leading in terms of total number of agreements with 13 PPAs for 502 MW of capacity. Poland and Italy also stood out, with eight and five contracts respectively while Slovakia announced its first PPA, followed by Estonia.

Solar leads with 24 agreements for a total of 1,107 MW, followed by onshore wind with 14 agreements for 582 MW and offshore wind with 8 contracts for 622 MW. For the remaining eight contracts, no details about the technology were made public.

Electricity market prices reflect those of gas and coal, with excess supply and low demand. In particular, Pexapark's EURO Composite index fell by 1.3% at the end of February to 43.20 euros (46.72 dollars)/MWh.

The largest drop in PPA prices occurred in the UK, with a monthly decrease of 10.5%. Poland recorded a 31.3% increase in PPA prices while Germany recorded a modest increase of 0.8%.

Norwegian state energy company Statkraft has closed two consecutive 10-year PPAs in Italy and Poland with French telecommunications company Iliad. The first deal is for 27.9 MW operated by Sonnedix, while the second is for approximately 36 MW of solar power in Resko, Poland, owned by Danish developer Better Energy.

In Germany, steel company Salzgitter Flachstahl has signed a 10-year PPA with Octopus Renewables for a 122 MW solar park that will start producing electricity in January 2025.

In Slovakia, the Šariš brewery has signed an agreement with Enery, an independent energy supplier in Austria, for a newly built 6.3 MW solar park in Iliašovce. Completion is expected in the next six months.