INFOGRAPHIC: Europe's renewable PPA volumes set to rebound as prices adjust to market realities

Signs of saturation in European PPA markets became clear in 2025, as contracted volumes fell to a six-year low, while average market prices remained significantly below the minimum required to offset project costs for new renewable assets, so-called PPA breakeven estimates.

S&P Global Energy data indicates that the gap between the prices needed to get a project financed and buyers' payment willingness is shrinking again.

However, market design reforms, support packages for energy-intensive industries, the return of gas price risk and the rollout of batteries could support PPA activity.