New reports from Pexapark show lack of PPA pricing consensus in Germany, Great Britain, France, Iberia, and the Nordics
Analysis driven by new Pexapark product feature, ‘Transactable Price Range,’ based on price data from the market, including polling data from leading market participants
Zurich, Switzerland, 4th November 2025 – A stark misalignment in PPA pricing expectations is severely constraining deal flow across Europe’s leading clean energy markets, according to new Q3 reports released by Pexapark, the price intelligence platform for clean energy.
Against the backdrop of PPA market illiquidity, offtake arrangements connected to Battery Energy Storage Systems (BESS) have become increasingly popular in Europe. Market participants now view co-located BESS as critical to alleviating the volume and price risks associated with renewable energy exposure, the reports found.
Luca Pedretti, COO & co-Founder of Pexapark, said: “The challenges observed in Q3 clearly show that the disconnect between price, driven by developer costs and regulatory benchmarks, and value, driven by forward prices, capture risk, and buyer appetite, is a primary constraint on renewables dealmaking. When bid ranges fall short of minimum offer ranges, transactions stop. This isn't due to a lack of ambition - it’s a symptom of poor information and understanding of pricing by different counterparties.”
The lack of pricing consensus is made clear in Pexapark’s latest data feature, the ‘Transactable Price Range,’ which shows the overlap between the highest buyer bids and lowest seller offers for specific contracts, indicating the range in which a deal can realistically be made.
In Germany, no such overlap existed in Q3. As a result, German PPA activity dropped to just three announced deals (169 MW) in the quarter, largely confined to niche on-site corporate arrangements.
For solar, the gap was driven by continually lowered capture assumptions from buyers, who are pricing in greater risk from oversupply and negative pricing. For onshore wind, seller expectations remain anchored by the minimum returns required to compete with recent government EEG auctions, keeping them out of reach of most corporate bids.
In Great Britain, a strong influence from the high price points of the inflation-linked Contracts for Difference (CfD) scheme is setting high seller expectations that remain significantly above corporate willingness to pay, resulting in no transactable price overlap for solar or onshore wind.
Similarly, in France, developers are basing their offer prices on elevated government auction benchmarks, while buyers apply larger discounts, leading to a standstill, especially for new onshore wind capacity.
In the Iberian markets, appetite for pure-play solar deals has waned, leading to a narrowing Transactable Price Range. The region faces rising capture and cannibalisation risks, compounded by surging technical curtailment in Spain, which forces solar generators offline with no remuneration, fundamentally challenging project economics.
In the Nordic markets, PPA Fair Values remain insufficient to cover developers' costs for new-build projects. Corporate buyers, increasingly price-sensitive, are less willing to pay the premiums required to make projects bankable, bringing new development activity to a near-halt, particularly in northern price zones.
Italy, however, offered a strategic counterpoint, demonstrating clear investor confidence in structured, long-term regulatory frameworks. While overall PPA capacity saw a slowdown for a second-consecutive quarter, deal count rose (10 deals), and the BESS market saw robust activity.
Crucially, the onshore wind segment in Italy maintained high Transactable Price levels, around 72.6 EUR/MWh, underpinned by consistent high demand for its stable profile. The country also successfully held its inaugural MACSE auction, allocating 10 GWh of storage capacity at highly competitive prices. This success, coupled with the announcement of two major BESS tolling agreements, underscores a market prioritising long-term revenue certainty.
The rise of BESS, meanwhile, was most evident in the UK market, where batteries are being co-located with approximately 70% of new solar and wind projects in H1 2025 to mitigate capture factor and cannibalisation risk. In Spain, BESS is being actively prioritised to shift generation away from periods of high solar generation and cannibalisation. In addition, Poland and Germany both saw major advancements in BESS commercialisation in Q3, underscoring the shift in developer strategy from solely selling generation to integrating flexibility.
Pexapark now publishes a Transactable Price Range for onshore wind and solar in France, Germany, Great Britain, Italy, Poland, and Spain. Pexapark is able to provide this unmatched transparency because it sources over 1,000 price quotes per month from its network of qualified market participants and facilitates transactions between them. Since 2017, Pexapark has facilitated over 40,000 MW of solar, wind and BESS deals.
“Our Transactable Price Range moves past theoretical valuations and gives the market real intelligence. It forces an honest conversation about where deals can actually close today. For renewables to scale quickly enough to meet energy transition targets, we need to stop debating value and start transacting with more pricing certainty”, added Pedretti.
About Pexapark
Pexapark is the price intelligence platform for clean energy. Covering solar, wind, and battery storage across more than 20 countries, Pexapark helps clean energy buyers, sellers, and investors navigate increasingly complex power markets with confidence. To do this, the company combines market-based insights and pricing solutions with expert-led transaction facilitation.
Unlike fundamental assumptions or infrequent RFPs, Pexapark is powered by real market data sourced on an ongoing basis from more than a hundred counterparties.
This enables Pexapark to provide a market consensus view on otherwise non-transparent contracts. As a result, both new entrants and experienced players trust Pexapark to connect the dots across every stage of clean energy commercialization – from pre-transaction analysis, to price negotiation, to post-transaction performance and exposure management.
Founded in 2017 by power traders, Pexapark has facilitated over 40,000 megawatts of transactions and currently serves more than 250 customers across Europe and the US.
For more information, contact hello@pexapark.com or visit www.pexapark.com