Auctions and CorporatePPAs: European MarketReview 2025
- 14 apr.
- 1 min de citit
15 martie, 2026, autor: Solar Power Europe
EU policymakers are seeking effective ways to enhance energy price competitiveness. They already have proven instruments at their disposal with long-term power purchase agreements (PPAs) and contracts for difference (CfDs) allocated through competitive auctions.
The EU awarded 25.2 GW of solar PV capacity through auctions and tenders in 2025, a 23% increase compared to 2024 and a new historical high after several years of weak performance. Following the previous peak in 2021, when 14.8 GW was allocated, the energy crisis exposed significant shortcomings in auction design across many Member States. Heightened PV equipment costs arising from the energy crisis were met with insufficiently low ceiling tariffs, unfit technologyneutralschemes, lengthy administrative procedures and complex non-price criteria. These design flaws contributed to sharply rising undersubscription rates, which persisted until 2024.
Comprehensive reforms in several major markets have since helped reverse the trend. As a result, awarded PV capacity rebounded in 2025, although high undersubscription rates remain one of the most persistent barriers to fully unlocking Europe’s solar potential. Between 2021 and 2025, nearly half of EU auction rounds attracted bids below the capacity on offer, highlighting a major missed opportunity for accelerating solar deployment.
Auctions are now a cornerstone of Europe’s strategy for scaling large‑scale solar installations,
and the pace of the energy transition increasingly depends on their effectiveness. To ensure
continued progress, EU policymakers should prioritize improving auction design, supporting
technology‑specific tenders, providing long‑term investment visibility, and integrating storage
solutions into solar auction frameworks.
Solar Power Europe 2025 Report:
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