{"id":161603,"date":"2025-10-23T15:07:26","date_gmt":"2025-10-23T15:07:26","guid":{"rendered":"https:\/\/www.pv-tech.org\/?p=161603"},"modified":"2025-10-27T15:08:15","modified_gmt":"2025-10-27T15:08:15","slug":"european-solar-ppa-prices-fall-below-35-mwh-q3-2025","status":"publish","type":"post","link":"https:\/\/www.pv-tech.org\/european-solar-ppa-prices-fall-below-35-mwh-q3-2025\/","title":{"rendered":"European solar PPA prices fall below \u20ac35\/MWh in Q3 2025"},"content":{"rendered":"\n
\"The
The average price of a solar PPA signed across Europe has fallen 19.4% between Q3 2024 and Q3 2025. Image: BayWa r.e.<\/figcaption><\/figure>\n\n\n\n

The average price of a solar power purchase agreement (PPA) in Europe in the third quarter of 2025 fell to \u20ac34.25\/MWh (US$40.05).<\/p>\n\n\n\n

This is according to the latest report from analyst LevelTen Energy, and reflects a decline of 3% between the second and third quarters of this year. Average European solar PPA prices have now fallen 19.4% compared with the third quarter of 2024.<\/p>\n\n\n\n

Average solar PPA prices remain lower than those for other technologies\u2014the average wind PPA price sat at \u20ac52.75\/MWh in the third quarter, a 1.4% quarter-on-quarter increase, while blended PPA prices fell 1$% to \u20ac35.55\u2014and fell at a faster rate over the last 12 months than either wind or hybrid deals. <\/p>\n\n\n\n

LevelTen concludes that \u201cthe increase in solar price cannibalisation\u201d in several European countries is decreasing the perceived value of standalone solar assets, while making investors more likely to support projects co-located with battery energy storage systems (BESS).<\/p>\n\n\n\n

Andr\u00e9s Acosta, director of innovation in Europe at LevelTen, told PV Tech<\/em> as much last quarter, when the same trend<\/a> emerged. In its third quarter report, the company notes that there has been a \u201csurge\u201d in hybrid PPA deals in Europe, combining both solar and wind with BESS, suggesting that investors are more interested in the presence of storage components, rather than the type of renewable electricity generation, when making investment decisions.<\/p>\n\n\n\n

Iberian blackout and data centre demands drive changes<\/h2>\n\n\n\n

The report also highlights considerable regional and national variety across the European solar PPA space, with the average cost of a solar PPA signed in the third quarter ranging from \u20ac120.00\/MWh in Ireland to \u20ac33.46\/MWh in Portugal. <\/p>\n\n\n\n

The average price of a solar PPA signed in Portugal fell -\u20ac2.16\/MWh between the second and third quarters of this year\u2014equivalent to a 6.1% decline\u2014surpassing Spain, which had the cheapest solar PPAs in Europe last quarter.<\/p>\n\n\n\n

Both countries have seen among the greatest percentage changes in average solar PPA price over the last 12 months. Between the third quarter of 2024 and the third quarter of 2025, the average solar PPA price signed in Spain fell 14.1%, while the average price in Portugal fell 16.3%, the third- and fourth-highest rates of decline across Europe, respectively. This reflects growing uncertainty in both markets following the blackout that rocked both countries\u2019 grids in April this year, for which over-voltage has been pinpointed as the primary cause<\/a>.<\/p>\n\n\n\n

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