The average price of power purchase agreements (PPAs) signed across Europe declined by 6.4% month-on-month in February, as the region’s energy trading market enters what analysts describe as a “big repricing” phase.

According to the latest data from Swiss market intelligence firm Pexapark, the average PPA price stood at €42.7/MWh during the month.

Italy recorded the sharpest decline among major markets, with prices falling 11.4% compared to January, followed by a 10.9% drop in Great Britain. None of the regions tracked by Pexapark reported price increases over the same period, with Germany experiencing the smallest decline at 1.3%.

Despite falling prices, market activity rose significantly. A total of 30 PPAs were signed in February, representing 2.2GW of contracted capacity—the highest monthly volume since February 2024.

The report highlights a notable shift in deal composition, with approximately one-third of newly announced PPAs covering operational assets. This trend reflects a widening gap between buyer and seller price expectations, which has made it more challenging to secure offtake agreements for new-build projects compared to already operational ones.

Battery storage activity also gained momentum. Pexapark recorded 14 battery energy storage system (BESS) deals across Europe, totaling 1.2GW, marking an acceleration compared to previous months.

Notably, battery storage featured in the largest renewable energy deal by capacity during the month—a 40-year agreement between Merlin Properties and Solaria Energies for a 426MW solar PV project in Spain. The deal includes a separate 10-year flexible purchase agreement (FPA) covering 600MWh of battery storage.