Swiss consultancy Pexapark’s EURO Composite Index rose 5% in September, driven by higher forward electricity prices across most European markets. Rising gas prices pushed up power purchase agreement (PPA) fair values, although calibration adjustments also contributed to the increase.

Great Britain recorded the largest monthly increase, at 10.9%, followed by Italy and Poland (6.9% each), the Nordic countries (4.3%) and the Netherlands (4.1%). Germany and France posted increases of 3.6% and 3.1%, respectively. The Iberian Peninsula was the exception, with PPA prices falling 3.5% in Spain and 1.4% in Portugal.

Pexapark also recalibrated PPA fair values in Denmark after buyers increased the risk discounts applied to their pricing. The adjustment reduced 10-year baseload values for contracts starting in 2028 by approximately €5 ($5.6)/MWh, although an upward revision to capture curves partially offset the impact on pay-as-produced PPAs.

In Poland, an update to the hourly forward price curve increased the additional value available to solar PPAs paired with battery energy storage systems (BESS).

PPA contracting activity recovered after the summer slowdown. A total of 25 agreements representing approximately 1.2 GW of announced capacity were disclosed in September, compared with 14 contracts totaling 335 MW in August.

Corporate buyers accounted for 21 agreements and nearly 1.1 GW, representing 92% of the announced capacity. One of the largest deals was Google’s 22-year, 507 MW agreement supporting the extension of operations at Finland’s Loviisa nuclear power plant.

Onshore wind slightly exceeded solar PV in contracted capacity, with 281 MW and 276 MW, respectively. Solar projects paired with BESS accounted for an additional 167 MW.

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