Corporate PPA Trends in the Global Market 2025/26

The Corporate PPA market experienced a recalibration in 2025. in Europe for instance, the first half of 2025 saw circa 6.08 GW of renewable capacity contracted under Corporate PPAs across 124 deals as compared to 8.25 GW in the first half 2024 across 180 deals. However, this temporary slow-down may be reversing. Europe's PPA market recovered sharply as of June 2025 with a reassuring month-on-month surge in volumes and a 40% rise in deal count.

Despite market changes, the factors driving Corporate PPA adoption in 2025 remain fundamentally unchanged from 2024:

1. global sustainability, decarbonisation and net-zero goals;
2. energy security and climate change;
3. the benefits associated with directly sourcing renewable power (corporate social responsibility, supply diversification, economic incentives, and reputational goals);
4. the ongoing rise of energy prices and the desire for price certainty; and
5. the need for flexible and tailored agreements to suit the commercial and financial needs of corporations and power generators.

New Entrants

The global PPA market continues to demonstrate resilience via new participant entry. In the first of half 2025, 53 corporates had entered the market as first-time offtakers. The steady influx of new market participants signals robust demand for, and confidence in, the Corporate PPA model.

Actors in the transport sector have emerged as notable new entrants. In the UK, Transport for London (TfL) announced its first public PPA, a 15-year deal with EDF Renewables UK linked to a solar PV project in Essex set to be built in 2026. Similarly, two of the largest European PPAs signed in June 2025 were signed in Spain, both involving its national rail operator Renfe.

Tech Giants

The most prominent players in the global Corporate PPA market continue to be technology companies. While solar PV remains their preferred technology type, 2025 has seen a marked uptick in tech companies signing nuclear-backed PPAs.

In June of this year, Meta and Constellation Energy entered into a 20-year PPA pursuant to which Meta will offtake 1,121 MW of nuclear energy from the Clinton Clean Energy Center in Illinois starting from June 2027. As at June 2025, Meta was simultaneously putting forward requests for proposals for new nuclear projects between 1-4GW across more than 20 U.S. states.

Similarly, Amazon signed a PPA with Talen Energy for 1,920 MW of nuclear energy to power its data centres in Pennsylvania through 2042. This represents one of the largest nuclear PPAs ever signed by a private company.

Google – another household tech name – signed a 200MW PPA with nuclear fusion firm Commonwealth Fusion Systems. The power is to be supplied from the generator’s ARC nuclear power plant in Virginia, which has a projected capacity of 400MW and is set to be operational in the early 2030s.

Big tech’s need for reliable carbon-free energy is largely driven by the aggressive rollout of AI and other cloud technologies, which in turn rely on the continued build out and deployment of energy-intensive data centres. Single hyperscale data centres can consume over 100MW, and the International Energy Agency anticipates that global data centre power consumption may double to circa 945 TWh by 2030.

Waste-to-Energy

In 2025, waste-to-energy PPAs are increasingly gaining a foothold in the Corporate PPA market, both in continental Europe and the UK.

In June, SUEZ, the waste management specialist, announced two offtake arrangements tied to its waste-to-energy facilities in France. Bouygues Telecom has agreed to offtake 87 GWh per annum over the next 15 years, and Carrefour will offtake around 46GWh per annum over this same period.

And in the UK, on 23 June 2025, Engie and enfinium signed Corporate PPA pursuant to which enfinium will supply around 390 GWh per annum to Engie from 2025 to 2028. Great Britain, with a strong track record of investing in the waste-to-energy sector, is well positioned to emerge as a strong market for waste-to-energy PPAs.

Europe

While emerging European PPA markets, such as Spain and Italy, continue to grow, traditional markets such as France and Germany have experienced a somewhat turbulent 2025 thus far.

In June 2025, Italy registered its largest ever solar PPA between an undisclosed US tech company and Enfinity Global. Similarly, Spain has grown its Solar PV PPA market, boasting a 51% year on year increase between the first half of 2024 and 2025. These successes have helped offset the slightly gloomier picture in Northern Europe, in particular with regard to solar PV backed PPAs.

US

PPA prices in the U.S. surged by approximately 4% in July 2025 following passage of the ‘One Big Beautiful Bill’, which slashed renewables energy subsidies and sent a chill through the clean energy industry. The changes introduced by the OBBB are creating a sense of urgency among developers and offtakers to finalise PPAs before the incentives introduced in the Biden-era Inflation Reduction Act expire. Additionally, nearly a third of renewable energy developers in the U.S. have said that they plan to suspend or cancel projects as a result of the OBBB.

While the Investment Tax Credits (ITCs) for wind and solar are now expiring sooner than originally planned, they are remaining in place for a longer window for battery storage projects, which will therefore gain a strategic advantage in the market.

Market Maturation

The fact that the ‘green at any cost’ approach may be coming to a temporary halt is more likely a reflection of market maturation rather than fundamental weakness. PPA Prices are moving closer to what market professionals see as fair value, though corporates are still factoring in a willingness to pay green premiums in their procurement budgets. It is likely that this slight recalibration in the PPA market will result in pricing that more accurately reflects underlying value and risk. 

In the near term, the European Corporate PPA market may be defined more by innovative structures and increased BESS integration than by rapidly growing deal numbers. Though transaction volumes may be declining from peak levels in recent years, the market is establishing sustainable foundations for long-term growth, supported by continued corporate sustainability commitments, improved pricing stability and the emergence of new technologies and market participants.

If you would like to find out more, please visit our Corporate PPA Hub or get in contact with us.