PPA trends

What are the current PPA trends in 2025?

What are the PPA trends in 2025?

At ~38GW in size, the UK PPA market has been fundamental to the development of renewable generation capacity. As demand rises and policy evolves, PPAs continue to shape how renewable energy is financed, delivered, and secured, underpinning the growth of the renewable sector.

01

CfDs dominate the market

CfDs remain the primary route-to-market for developers, offering improved pricing, up to 20-year terms, and strong revenue certainty.

AR6 awarded nearly 10GW, with AR7 set to unlock further capacity.

02

Mixed route-to-market strategies

Developers are combining CfDs with CPPAs to balance risk and navigate policy uncertainty.

This hybrid approach supports financing and builds resilience in a shifting policy landscape.

03

Corporate PPA trends

CPPA demand remains strong as tech, data centres and retail sectors continue to lead.

Long-term agreements (3–15 years) remain preferred, aligning with corporate net zero goals and providing predictability.

What are the PPA trends in 2025?

At ~38GW in size, the UK PPA market has been fundamental to the development of renewable generation capacity. As demand rises and policy evolves, PPAs continue to shape how renewable energy is financed, delivered, and secured, underpinning the growth of the renewable sector.

04

Offtaker role in FiD

Suppliers are key to enabling Final Investment Decisions.

Early engagement and transitional PPAs, like SmartestEnergy’s SSP Index PPAs, help bridge the gap to commissioning, unlocking investment earlier in the project lifecycle.

05

Contract structures and flexibility

CfDs offer fixed, government-backed pricing with low risk and long-term certainty.

CPPAs provide flexible, market-linked pricing and optional hedging tools, allowing corporates and generators to tailor to their needs and risk appetite.

Achieving renewable growth demands not just infrastructure, but investment, all of which must be underpinned by tools that reduce risk, secure pricing, and support long-term planning.

SmartestEnergy supports both CfDs and CPPAs, enabling developers and corporates to structure flexible, bankable solutions and navigate a rapidly evolving market.