LevelTen European PPA Price Index, Q4 2025

January 29, 2026

LevelTen Energy’s Q4 2025 European PPA Price Index Report is now available for subscribers. Highlights of this quarter’s report include:

Solar prices drop further in Q4

Solar PPA prices dropped for the third straight quarter on LevelTen's Market-Averaged Continental Index, posting a 1% decline. Year over year, European P25 solar PPA prices have gone down by approximately 8%.

In many markets, demand for renewables is lagging behind supply, contributing to the trend of dropping prices. However, the primary driver is likely the continued increase in low and negative power prices across many European markets, as well as potent levels of solar price cannibalisation, particularly in Germany and Spain. These market phenomena erode contract values for pure-play solar deals, compelling developers to reduce PPA prices to acknowledge these market realities.

In many European markets, development is hybridising, with the addition of storage providing a wide array of benefits. This quarter's report includes pricing data on European storage deals for the first time.

Wind prices decline

Q4 2025 saw wind PPA prices on LevelTen's Market-Averaged Continental Index decline by 3% following a largely stable Q3. Wind offers continue to provide compelling offtake opportunities for corporates, especially those in the tech sector looking to power data centers. Wind's high capacity factors and attractive production profiles make it a well-suited addition to a diversified approach to energy sourcing. In the Nordics, cold temperatures that help cool data center operations add even more value to the overall picture.

This quarter sees the return of Germany on our Wind Index with a robust German offer pool, as well as Italian wind. In Spain and Germany, wind is providing a solid alternative for corporate buyers interested in renewables, but wary of the PV price cannibalisation that continues to depress solar values in these markets. Europe's wind sector remains dynamic, and the technology continues to act as a cornerstone of the continent's decarbonisation ambitions.

The EU's grid plan comes into view

In December, the European Commission published its "Grids Package", a comprehensive plan to modernise the bloc's electrical infrastructure and broaden the lens of grid planning to maximise efficiency and increase collaboration across nations. The package exempts grid-upgrade and storage projects from some environmental reviews, and advocates for interconnection queues that prioritise a "first-ready" approach to mitigate the bottlenecks created by speculative projects. All in, the package provides a strong vision for how Europe can enable the next chapter of its energy transition from both technical and policy perspectives.

On the country-specific level, Spain enacted Royal Decree 917/2025, which will help support the development of hybrid and standalone-storage projects in the nation. Industry players hope the new law will help the country address its ongoing price cannibalisation issue with speed, helping to de-risk new energy project investments.

Buyers must evolve with the market

Corporate buyers hitting the market with focus and confidence continue to find PPA success, with LevelTen helping to facilitate many deals over the course of 2025. Europe's energy system is in a period of transition, as the rapid growth of storage and hybrid project development push the continent into its next chapter of decarbonisation. As the energy pipeline grows more hybridised, so too will the PPA market and corporate offtake needs.

Yet, the hybrid PPA space is truly nascent, with standardised approaches to signing such contracts sorely lacking. Thankfully, LevelTen and our partners have been at the vanguard of defining hybrid PPA contracting norms, and have made major strides that allow us to share contracting approaches that make the benefits of hybrid deals accessible to a far wider audience.

The future is hybrid, and at LevelTen, we're excited to bring far more players into the fold. Explore this critically important topic and LevelTen's hybrid PPA contracting best practices by downloading your copy of the report today.