Europe
In Q2 2025, P25 solar PPA prices in Europe fell over 5% to €59.62/MWh, signaling a clear shift from the sharp increases of previous years. Most markets, especially Italy, Poland, and Romania, saw strong declines due to energy oversupply, while in Germany and Spain, high offer volumes and a shift toward hybrid solar-plus-storage projects also pushed prices down.
“After three quarters of stable trends, Q2’s price drop reinforces that the sharp increases of recent years have leveled off, giving PPA buyers greater clarity and improved conditions to act with confidence. While further declines may come, today’s market offers a meaningful opportunity to secure long-term value without the urgency or volatility of past years,” observe the analysts.
Wind prices here declined by 2% to €88.69/MWh during the reporting quarter, but the industry continues to battle challenges around land availability and permitting, along with tough interconnection queues.
Going forward, Europe’s PPA activity may be impacted by the political changes. An April blackout in Iberia, which was due to voltage control, sparked debate among political circles in recent times. In Poland, the new coal-leaning President Karol Nawrocki is feared to slow climate progress as he has been critical of the EU’s climate initiatives. Moreover, LevelTen also points to the trend of some EU countries pushing to weaken corporate climate rules, which it fears could affect PPA activity.
Meanwhile, PPA prices in Europe are dropping, opening up good opportunities for buyers. But with risks like price cannibalization, hybrid deals with storage are gaining appeal. Quick, strategic action remains key, as top PPA offers are going fast to large, sophisticated energy buyers, according to LevelTen’s Q2 2025 European PPA Price Index Report.
In a separate news related to Seattle-based LevelTen Energy, the online renewable energy marketplace has filed a Worker Adjustment and Retraining Notification (WARN) in the US to permanently lay off 60 workers with effect from August 15, 2025.
LevelTen’s decision to reduce its workforce aligns with the ‘economic impacts of the recent federal budget legislation, tariff uncertainty, and ongoing permitting challenges,’ stated the company in an email to GeekWire. The management does not see new customers for renewable energy power purchase agreements, despite growing demand for energy, owing to the above-mentioned challenges on the supply side.
