LevelTen Energy’s Q2 2025 European PPA Price Index Report is now available for subscribers. Highlights of this quarter’s report include:
Solar Prices Down in Q2
P25 solar PPA prices on LevelTen Energy's Market-Averaged Continental Index for Europe declined by more than 5% in Q2 2025. After three quarters of stable trends, Q2’s price drop reinforces that the sharp increases of recent years have leveled off, giving PPA buyers greater clarity and improved conditions to act with confidence. While further declines may come, today’s market offers a meaningful opportunity to secure long-term value without the urgency or volatility of past years.
The majority of solar markets exhibited downward pricing trends for solar PPAs in Q2, with Italy, Poland, and Romania posting particularly robust declines, due in part to an oversupply of energy. Other markets with particularly high offer volume, like Germany and Spain, are seeing solar PPA prices decline further as some developers there seek to find buyers for their pure-play solar assets amid broader market shifts to hybridised development pipelines that leverage the synergistic performance benefits provided by storage (BESS) capabilities.
Wind Prices Decline
Wind PPA prices across Europe declined in kind with those of solar PPAs during Q2, with the P25 wind price on LevelTen's Market-Average Continental Index dropping by 2%. Europe's wind industry continues to forge a path ahead following years of pandemic-era challenges. With that said, land availability and permitting remain very real obstacles for wind in many markets, as do tough interconnection queues.
Nonetheless, wind PPAs continue to provide compelling offtake opportunities for buyers, especially tech companies and data centre players with a vast need for clean energy in non-sunny hours. Wind's attractive production profiles make it a desirable part of a broader procurement strategy for buyers looking to decarbonise their operations at all hours. Q2 saw the Dutch wind market post a P25 price to the LevelTen Price Index for the first time ever, as well as the inclusion of a Greek wind P25 price — exciting developments that give reason to believe Europe's wind industry continues to grow more expansive and enticing for buyers.
Political Tides Continue to Shift
As always, Europe's political landscape remains dynamic. A massive grid blackout rolled across Iberia in late April and quickly became a political firestarter. With several reports being issued, all that is clear so far is that the bulk of the cause of the cascading outages was related to voltage control.
Poland's election of a new president, Karol Nawrocki, brings the potential to slow the country's climate progress following a solid streak of policy liberalisation that has dismantled obstacles to solar and, in particular, wind development in the country. While Nowrocki has been critical of EU climate initiatives and supportive of coal in the past, time alone will tell the extent to which his election will impact the country's surging clean energy sector. Meanwhile, more EU governments have continued to push for weakening corporate sustainability rules, which could hinder PPA market activity.
Dropping Prices, Ample Opportunities
The last five years have been an era of immense uncertainty and potent headwinds for clean energy development and procurement in Europe. However, Q2's PPA Price Index dataset makes crystal clear that the price-increasing challenges of the pandemic era have been left far behind. Now, buyers face a new problem: PPA prices that continue to reduce in light of the value-eroding impacts of cannibalisation and other market concerns. In this new paradigm, hybrid PPAs that utilise BESS are attracting more attention thanks to their ability to buoy project financials and provide significant performance benefits.
While many solid offers are available to PPA buyers, complacency is rarely rewarded in the PPA space. Buyers are encouraged to move forward with a clear understanding of their goals, prioritising communication and efficiency during the negotiation process. Large, sophisticated energy buyers continue to procure at scale and with speed, with high demand and short shelf lives for the very best PPA offers.
LevelTen Energy Europe Welcomes New Leadership
LevelTen Energy Europe is celebrating a new leader: Andrés Acosta, the new Head of European Office. “I’m looking forward to continuing to build on the strong foundation we’ve built with our Madrid-based team,” Acosta said. “Our customers have timely challenges to address, and I’m honored to be leading this amazing team as we help them tackle what’s ahead,” he said.
Subscribers of the PPA Price Index can log in to the LevelTen Platform to read the full report. Not a subscriber? Contact us today to get access.
