4.2GW! Italy and Spain lead the European PV PPA market

According to data from Swiss consulting firm Pexapark, companies signed a total of 4.22GW of photovoltaic power purchase agreements (PPAs) in the first half of 2025.

This figure is a slight increase from nearly 4GW in the same period of 2024, but it failed to reverse the overall decline of 25% year-on-year in the total number of Renewable Energy PPAs in the first half of 2025.
Focus on the European Solar Photovoltaic PPA market: the number of transactions has dropped sharply from 95 in the first half of 2024 to 73 in the same period of 2025. After experiencing the most sluggish May since 2020, the number of renewable energy PPA contracts signed in June soared by more than 700% month-on-month to nearly 1.4GW, and its activity was basically the same as in March and April this year.
PV projects accounted for the largest share of renewable energy power purchase agreements signed in June, with a total of 1.2GW reached through 12 transactions. Spain and Italy became the most active markets for renewable energy power procurement that month, reaching 579MW through 6 transactions and 420MW through 2 transactions respectively.
These two countries are also the markets with the largest increase in the number of PV PPA contracts signed in Europe in the first half of 2025. The scale of PV PPAs in Italy surged 184% year-on-year, an increase of nearly 700MW from the same period last year.
According to Pexapark data, the Italian market shows a trend of continued growth in corporate power purchase demand and the expansion of PPA transactions. The country set a record for the largest PV PPA in history in June, when US independent power producer Enfinity Global signed a 420MW corporate purchase agreement with an undisclosed US technology company.
The Spanish market grew 51% year-on-year, with an additional 462MW in the first half of 2025 compared with the same period in 2024. The country also won the two largest PPA contracts signed in June. Both agreements involve Renfe, the Spanish national railway operator. According to Pexapark data, the first is a 240MW PV PPA signed with Spanish independent power producer Sonnedix, and the second is a 190MW wind power agreement reached with Spanish power company Iberdrola.
Growth in demand for solar PPAs in Spain and Italy partially offsets the decline in markets such as Germany and France, which have seen the largest declines in solar offtake due to increased competition.
Germany saw a year-on-year decline of 88%, with only 228MW of solar PPAs signed in 8 deals in the first half of 2025 (compared with 31 deals/1.2GW in the same period of 2024). France also saw a significant decline, down 57% year-on-year, with contracted volume shrinking by 253MW.
Corporate power demand slowed significantly in the first half of 2025
Pexapark's first half 2025 report also revealed another trend: corporate power buyers are losing interest. Between January and June 2025, the total number of renewable energy PPAs signed by companies fell by more than 40% year-on-year, reaching nearly 4.3GW through only 93 deals.
This decline was partially offset by the number of PPAs signed by power companies, which doubled year-on-year from 900MW to 1.8GW.