About this episode
The Pexapark Podcast is expanding its coverage of Europe and the United States with two new co-hosts: Apostolis Valassas, Head of Analysis Europe, and Sylvia Leyva Martinez, Head of Analysis US.
As the team starts work on Pexapark’s flagship Market Outlook, Luca Pedretti sits down with Apo and Sylvia to take a first look at the major trends shaping European and United States renewables and storage markets in 2027.
The picture differs on each side of the Atlantic. In Europe, PPA markets are rebalancing rather than shrinking, while flexibility purchase agreements are booming. In the US, large loads, capacity market design and federal policy are redrawing the map.
Key takeaways
Europe
- 1PPAs are rebalancing, not collapsing. Operational, hybrid and offshore wind deals are offsetting the drop in solar-only PPAs.
- 2Operational PPAs are on the rise. Almost 20% of volumes, up from 9% in 2024.
- 3FPAs are almost on par with PPAs. Germany now leads, overtaking GB.
- 4Partial tolls are Germany’s go-to BESS structure. Covering 70–80% of capacity, so merchant exposure stays.
- 5Co-location is the next frontier. Hybrid PPAs are growing in Germany and Spain, but contracts aren’t standardised yet.
United States
- 1ERCOT is betting on new load. A 174 GW large-load queue against a 91 GW record peak could bring volatility back.
- 2PJM is short on supply. Capacity auctions have hit the $325/MW-day cap three times in a row.
- 3Accreditation favours storage and gas. They’re credited at 59–79% of capacity, versus 7–10% for solar.
- 4Federal policy remains a roller coaster. New tariffs could lift solar project prices by around 10%, while permitting reform offers hope.