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European Corporate PPA Deal Tracker: Tech and Manufacturing Companies Lead Announcements in Q4 2021

By Yasiru Jayakody, Sales Analyst, Edison Energy

2021 was the busiest year for PPA signings in the European market, with over 8,100 MW signed from 102 agreements spanning 14 countries. Q4 saw the addition of almost 1,700 MW from 28 signings, with the majority of these coming in December. This is a reduction from last quarter’s level of activity but still exceeded 2020 as the busiest year yet by over 1,000 MW. At a country level, Spain saw the most capacity added in 2021 with over 2,300 MW, followed by Italy and Sweden with over 1,600 MW and 1,200 MW, respectively.

European Offsite Renewable Energy Power Purchases by Sector

Source: BloombergNEF, Q4 2021 and Altenex Energy

Microsoft, the lead purchaser in 2021, reported no activity in the past quarter. Amazon, however, signed 10 deals in December for 845 MW, the largest for 364 MW from their Spanish PV plant. Tech companies in Europe dominated the continent’s PPA market at a similar level to North America, accounting for just under 60% of all announced capacity.

Manufacturing and pharmaceutical companies continued their positive purchasing trend in the European market, having announced double the number of signings for more than triple the amount of capacity than they did in North America in 2021. Johnson & Johnson, who only entered the European PPA market in Q3 2021, added another 30 MW of capacity from two Irish wind farm deals, while Novartis added 135 MW of capacity via two Spanish solar projects. The biggest mover from this sector was BASF, having announced 1,300 MW of added capacity from three deals with wind farms in Germany, Spain, and the Netherlands.

For more insights on the European and U.S. renewable energy markets, download our Q4 2021 Global Market Report or contact us.