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Pexapark Report Unveils PPA Market's Golden Era: Record 16.2 GW Contracts in 2023

The report highlights key trends, including a 40 percent increase compared to 2022, a significant surge in deal count by 65 percent, and a notable shift in the balance between corporate and utility offtakes.

January 31, 2024. By Abha Rustagi

Swiss consulting firm Pexapark's latest 'European PPA Market Outlook 2024' report indicates that the Power Purchase Agreement (PPA) market has entered a golden era, experiencing unprecedented activity with a staggering 16.2 GW of disclosed contracted volumes in 2023.

The report highlights key trends, including a 40 percent increase compared to 2022, a significant surge in deal count by 65 percent, and a notable shift in the balance between corporate and utility offtakes.

The corporate sector maintained its leading role in driving the PPA market, while utility offtake activity experienced an uptick, driven by reduced volatility levels and robust corporate demand. The report underscores a preference among corporates for direct PPA contracts with projects, showcasing a clear trend of illustrating additionality, particularly as many utilities contract with corporates based on their own generation.

The role of utilities in the PPA market has evolved, extending beyond offtake activity to include contributions through back-to-back PPAs and risk management services for both buyers and sellers.

Spain and Germany emerged as powerhouses, jointly accounting for 50 percent of the total contracted volumes in 2023. Iberdrola secured the top seller position, orchestrating nine deals with corporates, totaling 908 MW. Statkraft claimed the title of the most active seller with 19 deals. Notably, Amazon, led by Jeff Bezos, returned to the top buyer position, contracting 1.87 GW across seven deals, securing the highest deal count.

In terms of sectors, Information Technology conglomerates maintained their dominance, securing a total of 3.6 GW across 25 deals. Consumer Staples retained its leading position in deal count while ascending to the second position in terms of contracted volumes.

The report signals a dynamic and evolving landscape in the PPA market, with notable achievements, shifting power dynamics, and a record-setting year in 2023.

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