2021 was a highly unpredictable year in the European power sector.
European power prices reached their highest levels ever in 2021 as a result of the perfect storm of increased gas demand in Europe and Asia as lockdowns eased, reductions in US supply following Hurricane Ida, and restrictions in Russian gas supply.
However, PPAs resisted this extreme volatility in a record year for PPA capacity, with an additional 10GW added to total capacity under PPAs as corporates looked to hedge against price volatility and secure renewable sources for their operations.
The Zeigo platform saw 76% more PPA offers in Q3 of 2021 compared to Q1 and Q2 combined. Increased demand was in no small part a result of comparatively stable PPA prices throughout the European market with offer prices averaging at €47.61/MWh (£48.10/MWh in the UK) on the Zeigo platform in Q3. As energy markets stabilise and governments push for more ambitious climate targets following COP 26, the increase in demand for PPAs shows no sign of slowing down as we enter 2022.
Data from the Zeigo platform has been able to give a view into the European market this last year. Key highlights included in the European PPA Report 2021:
- The volume of Corporate PPAs signed in 2021
- The maturity of European Markets
- CPPA pricing throughout 2021
- PPA trends over the year
- PPA Outlook for 2022
With PPAs set to expand even further in 2022 take an in-depth look at the lessons to learn from 2021 and 5 key predictions surfacing for the year ahead.
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