Public energy auctions and corporate power purchase agreements (cPPAs) played a key role in protecting European citizens and businesses from energy price volatility following the 2022 energy crisis, according to a new report published by SolarPower Europe.

The report, titled Auctions and Corporate PPAs: European Market Review 2025, reveals that these two market mechanisms accounted for 92 GW of solar installations in the European Union between 2022 and 2025. This capacity is equivalent to the electricity demand of 28 million EU households, representing more than 10% of homes across the bloc, according to the industry association.

The analysis highlights how long-term electricity contracts helped shield consumers and companies from energy price shocks in the aftermath of the crisis triggered by soaring fossil fuel prices in 2022.

“If auctions and corporate PPAs were a single country, they would have installed more than three times the solar capacity deployed by Spain in the same period,” the report notes. Spain installed 27.6 GW of solar during those years.

According to Dries Acke, Deputy CEO of SolarPower Europe, these mechanisms have already demonstrated their ability to strengthen Europe’s energy resilience.

“EU leaders are looking for effective ways to enhance energy price competitiveness and shield Europe from another fossil fuel price crisis. Corporate PPAs and auctions that award contracts for difference are already proven solutions,” Acke said.

He added that improving access to PPAs and strengthening auction frameworks will be essential to accelerate industrial electrification and ensure the continued expansion of solar energy in Europe.

Solar auctions rebound after early setbacks

The report also reviews the evolution of solar auctions during the first half of the decade. According to SolarPower Europe, auction performance peaked at 14.8 GW in 2021, but declined during 2022 and 2023, largely due to design shortcomings in several EU markets.

Among the main barriers identified are low ceiling tariffs, technology-neutral auction schemes, lengthy administrative procedures and complex non-price criteria. These factors became particularly problematic as equipment costs increased during the energy crisis.

However, the market began to recover after 2023. SolarPower Europe reports that 25.2 GW of solar capacity was awarded through auctions and tenders in 2025, marking a 23% increase compared with 2024 and a new historical high.

Despite the rebound, the report warns that many opportunities are still being missed. Between 2021 and 2025, nearly half of EU auction rounds received bids below the capacity offered, indicating structural inefficiencies in the design of some tender systems.

According to Simon Dupond, Senior Policy Advisor at SolarPower Europe, policymakers should focus on improving auction frameworks to sustain solar growth.

“To ensure that auctions can continue driving solar deployment, EU policymakers should prioritise technology-specific tenders, long-term investment visibility and the integration of energy storage in public support schemes,” Dupond said.

Corporate PPA market slows after boom years

The corporate PPA market followed a slightly different trajectory. SolarPower Europe notes that 2023 and 2024 were boom years for solar corporate PPAs, as companies sought long-term contracts to secure stable electricity prices after the energy crisis.

In 2025, however, announced solar PPA volumes fell below the previous year’s record for the first time in several years, suggesting the market may be entering a more mature phase.

Market conditions vary significantly across Europe. According to the report, structural challenges such as price cannibalisation, grid congestion and curtailment are beginning to slow PPA uptake in several countries.

Germany illustrates these dynamics particularly clearly: signed corporate solar PPA volumes in the country declined by 56%, according to SolarPower Europe.

At the same time, demand is evolving. The report notes that the initial wave of corporate PPAs was driven by “low-hanging fruit”, while future growth will increasingly depend on new industrial consumers or companies electrifying their operations.

Spain continues to lead Europe’s PPA market

Despite these challenges, Spain remains Europe’s leading market for solar corporate PPAs.

According to SolarPower Europe, the country signed more than 2 GW of corporate solar PPAs annually between 2023 and 2025, maintaining a strong pipeline of long-term renewable contracts.

Other countries experiencing notable growth include Italy, Poland and Bulgaria. These markets continue to rely heavily on gas-fired power generation, which contributes to relatively high wholesale electricity prices and increases the attractiveness of long-term renewable contracts.

Policy recommendations to strengthen solar deployment

To maximise the role of auctions and corporate PPAs in Europe’s energy transition, SolarPower Europe outlines five key policy recommendations.

First, the organisation calls for a level playing field between different routes to market, allowing developers to choose between PPAs and public auctions depending on their financing strategy.

Second, it recommends better-designed auction schemes, including technology-specific tenders and clearer long-term planning to prevent undersubscription.

The report also highlights the importance of integrating energy storage into both auctions and PPAs, particularly as negative electricity prices, curtailment and grid congestion become more frequent across European power markets.

In addition, SolarPower Europe urges the EU to recognise renewable PPAs in carbon accounting rules, ensuring that corporate procurement of clean electricity is properly reflected in emissions calculations.

Finally, the organisation calls for accelerating electrification across all sectors, noting that most energy consumption in the EU still relies on fossil fuels.

According to SolarPower Europe, expanding electricity demand through electrification will be critical to sustaining renewable investment while improving Europe’s energy security and competitiveness.