PPA Market Sees Smaller Deals, Declining Prices in October
The renewable energy Power Purchase Agreement (PPA) market witnessed a shift towards smaller deals in October, according to data from Pexapark. While the total number of deals increased compared to the same month last year, the average PPA size shrunk, indicating a trend toward more companies seeking smaller volumes of renewable energy.
Smaller Deals, Bigger Numbers
Pexapark noted that October 2023 saw a higher monthly disclosed deal volume (1,490MW) compared to October 2024. Interestingly, the total number of deals in October 2024 surpassed that of October 2023, suggesting a surge in smaller-scale PPAs.
“The average PPA size [year to date] has decreased from 73MW in 2023 to 56MW in 2024. This comes down to fewer very large PPAs announced this year but more companies with smaller appetite for volumes,” Pexapark said.
UK Leads with Tesco‘s Largest PPA
The largest PPA deal in October was inked in the UK, between Quinbrook Infrastructure Partners and supermarket giant Tesco. This 15-year agreement covers a 242MW share from the 373MW Cleve Hill solar-plus-storage project, marking Tesco’s largest PPA to date.
signed between Quinbrook Infrastructure Partners and supermarket giant, Tesco
Spanish Wind and Solar Secure Long-Term PPA
Meanwhile, in Spain, telecoms firm Cellnex and Elawan Energy signed a 10-year, 200MW PPA linked to one onshore wind and three solar PV projects. This agreement demonstrates the growing demand for renewable energy solutions from corporate players.
PPA Prices Decline
Pexapark’s analysis also revealed a dip in the value of PPA deals. The average price in October fell 1.7% month-on-month to €49.24/MWh (US$52.09/MWh).
The UK experienced the most significant price fluctuation, recording a 6% drop. Pexapark attributed this decline to a decrease in some future power prices.
What factors are contributing to the trend of smaller PPA deals?
## PPA Market Sees Smaller Deals, Declining Prices in October
**Host:** Welcome back to the show. Joining us today to discuss the latest trends in the renewable energy market is Alex Reed, [Alex Reed Title] at Pexapark. Thanks for being here.
**Alex Reed:** It’s my pleasure to be here.
**Host:** So, Pexapark’s recent market analysis revealed a fascinating trend in the PPA market. Can you tell us more about what you found?
**Alex Reed:** Absolutely. We observed a definite shift towards smaller PPA deals in October. While the overall volume of deals increased compared to last year, the average size of each PPA shrank. This suggests a broader range of players are entering the market, with perhaps smaller companies opting for targeted, manageable PPAs. [[1](https://www.pv-tech.org/more-ppa-deals-in-europe-smaller-sizes-says-pexapark/)]
**Host:** Interesting. And what about PPA prices?
**Alex Reed:** Another notable finding was a slight decline in average PPA prices in October. The average price dipped by 1.7% compared to the previous month, settling at €49 per megawatt-hour. [[1](https://www.pv-tech.org/more-ppa-deals-in-europe-smaller-sizes-says-pexapark/)]
**Host:** So, smaller deals and lower prices. Any thoughts on what might be driving these changes?
**Alex Reed:** It’s likely a combination of factors. The increasing accessibility of renewable energy technologies, coupled with growing corporate sustainability commitments, is encouraging more companies to explore PPAs, even on a smaller scale.
**Host:** That makes sense. what do you see as the implications of these trends for the future of the PPA market?
**Alex Reed:** We expect to see continued growth in the PPA market, driven by these evolving dynamics. As more companies seek to decarbonize their operations and renewable energy costs continue to fall, the PPA market will likely become even more diverse and competitive.
**Host:** Well, fascinating insights, Alex Reed. Thank you for sharing your expertise with us today.
**Alex Reed:** My pleasure.
