A new report shows that public energy auctions and corporate power purchase agreements played a major role in expanding solar energy across the European Union. Between 2022 and 2025, these two instruments together supported 92 GW of new solar installations. This amount of electricity is enough to supply around 28 million households, which represents more than ten percent of all homes in the EU. To understand the scale, if auctions and corporate PPAs were combined and treated as a single country, they would have installed over three times the solar capacity added by Spain during the same period, as Spain installed 27.6 GW.

The analysis points out that long-term contracts proved extremely valuable during the 2022 energy crisis. They helped businesses and citizens secure more stable electricity prices at a time of high volatility. However, even though these mechanisms have provided strong support in recent years, they are now facing certain challenges. With another fossil fuel–driven energy shock unfolding and Europe’s solar rollout showing signs of slowing down, SolarPower Europe’s latest report stresses the importance of maintaining strong and consistent auction and PPA systems.

According to Dries Acke, Deputy CEO at SolarPower Europe, European leaders are searching for effective ways to improve price stability and protect the region from further fossil-fuel price spikes. He explained that solutions already exist in the form of corporate PPAs and auctions that use contracts for difference. He believes that Europe needs to accelerate industrial electrification, simplify access to PPAs, and ensure that auctions are designed well to prevent undersubscription and missed opportunities. He also pointed out that integrating storage into both auctions and PPAs would strengthen their impact and reliability.

The report, titled “Auctions and Corporate PPAs: European Market Review 2025,” examines the first half of the decade and shows that the early years were shaped by several systemic barriers. Solar auction performance peaked in 2021 at 14.8 GW, but then fell sharply in 2022 and 2023. This decline was caused by a combination of rising equipment costs linked to the energy crisis and auction designs that did not adequately reflect market realities. Many auctions had ceiling tariffs that were too low, used technology-neutral systems that did not favour solar, or required lengthy administrative processes and complex criteria beyond price.

After 2023, the situation improved. By 2025, solar auctions and tenders resulted in 25.2 GW of installed capacity, which was 23 percent higher than in 2024 and set a new record. This rebound demonstrates how quickly progress can be made when auction design is strengthened. Yet, there is still considerable room for improvement. Between 2021 and 2025, nearly half of all auction rounds in the EU received bids that were below the volume of capacity offered. This indicates that Europe is not taking full advantage of opportunities to speed up solar deployment.

Simon Dupond, Senior Policy Advisor at SolarPower Europe, noted that for auctions to continue supporting Europe’s solar growth, policymakers must focus on improving overall auction design, encouraging technology-specific tenders, providing clearer long-term visibility for investors, and integrating storage solutions into public support mechanisms. The report also looks at corporate PPAs, which tell a slightly different story. In the period immediately following the 2022 crisis, there was a surge in solar PPA activity. The years 2023 and 2024 were strong, with continuous growth. But in 2025, announced corporate PPA volumes for solar fell below the previous year’s record for the first time in several years.

The health of the PPA market varies widely across Europe. In some countries, structural factors such as price cannibalisation, grid congestion, and curtailment are limiting growth. Germany is one of the clearest examples, with its signed solar corporate PPA volumes dropping by 56 percent. Much of the early PPA growth came from easy opportunities, and now future demand depends on new industries or existing sectors shifting toward electrification.

Spain remains a bright spot and continues to lead the European PPA market. It has consistently signed more than 2 GW of corporate solar PPAs each year from 2023 to 2025. Italy, Poland, and Bulgaria have also posted strong results. One reason these countries are seeing high PPA uptake is their continued dependence on gas-fired power, which keeps wholesale electricity prices elevated and encourages companies to secure long-term price stability through PPAs.

The report concludes with five policy recommendations aimed at maximising the benefits that solar PPAs and energy auctions can deliver for Europe’s energy security and economic competitiveness. These recommendations emphasise the need for reliable auction design, better integration of storage, strong investment visibility, targeted support for different technologies, and a stable framework that allows the PPA market to grow across all EU countries.

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