European PPA market breaks records as number of deals rises 66%; Czech market is only just emerging

The European market for long-term direct electricity sales agreements (PPAs, or Power Purchase Agreements) grew by 40% last year in terms of installed capacity (to a total of 16.2 GW) and by 66% in terms of the number of contracts concluded (to a total of 272). The average electricity selling price for the full year settled at EUR 58/MWh, while by the end of last year it was already around EUR 50/MWh. The PPA market in the Czech Republic is still in its infancy, but it could soon begin to develop. 

The European market saw a post-crisis record both in the number of PPAs concluded and in the volume of contracted capacity, according to a report by PexaPark. PPAs have grown in popularity due to interest in securing stable electricity supply prices, as fixed-price PPAs protect buyers from fluctuations in market electricity prices, interest in electricity prices lower than market prices, and, last but not least, buyers' efforts to meet corporate ESG targets.