POWER
Pexapark anticipates improved risk management for negative price events regarding PPAs, a surge in mixed-technology PPAs, rapid growth in BESS agreements, and stable utility offtake volumes, according to its renewables market outlook for this year.
- Additionally, corporate PPA volumes are expected to grow moderately as sustainability goals continue to drive demand, but market volatility will keep a lid on more drastic increases.
- Mixed-technology PPAs are set to double in volume as corporate buyers seek more diversified energy portfolios and better pricing structures.
- In 2024, 15.2GW of disclosed contracted volumes were announced, an 11% decrease from 2023 (see chart) .
- There was also a 59% YoY drop in publicly disclosed utility PPAs, while corporate offtake volumes slightly decreased by 1% YoY.
- However, 316 long-term PPAs were signed last year, a 14% increase from 2023, marking a record.
- And 157 new corporates signed PPAs, enabling 5.2GW of capacity in 2024, while the utility PPA deal count decreased by 38% on the year.
- For the sixth year in a row, Spain continued to be the leading destination for PPA deal-making, with disclosed contracted volumes reaching a total of 4.66GW.
- Iberdrola was the top seller of PPA volumes at 1.25GW, with Amazon – contracting around 1.5GW – being the top buyer in 2024.
201 words