Price volatility is driving more shorter-term offtake deals for renewable assets
Energy price volatility reshapes PPA market – Pexapark
Volatility challenges long-term PPA models, while corporate market grows with rise of mega-buyers such as Amazon
Price volatility in European energy markets is driving a shift away from long-term power purchase agreements (PPA) to shorter-term offtake deals for renewable assets, according to software and PPA advisory company Pexapark. Annualised volatilities in European front-year traded energy contracts, a key driver in PPA pricing, reached 250pc last year—five times the level of usual spikes. Recent energy price volatility, driven by surging natural gas prices, will have lasting impact on the PPA market and will “test the availability and pricing for long-term PPAs of 10 years or more”, Pexapark says in its European PPA Market Outlook. “This market uncertainty will herald in the era of the short-term
Also in this section
12 March 2026
Role of world’s largest carbon cap-and-trade market under scrutiny as war in Iran threatens to drive EU energy costs to unsustainable levels
10 March 2026
Europe urgently needs to bring more projects to FID, as CCS investors warn they might divert capital to faster-growing regions
9 January 2026
A shift in perspective is needed on the carbon challenge, the success of which will determine the speed and extent of emissions cuts and how industries adapt to the new environment
2 January 2026
This year may be a defining one for carbon capture, utilisation and storage in the US, despite the institutional uncertainty
