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The Pexapark Podcast

Episode 24 | The State of Co-Location. The Way forward for Hybrid PPA

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Welcome back to The Pexapark Podcast! In the first part of the episode, we look at key market shifts: Germany launches a €500m guarantee scheme to revive its stalled PPA market, Italy’s FER-X auction confirms solar’s dominance with many projects now turning to PPAs at €54–60/MWh, and the Netherlands injects €1.2bn to rescue offshore wind. Battery revenues in Europe dipped on weak summer volatility but are already recovering, while the U.S. set a record with 4.9 GW of new storage in one quarter.

 

In the second half, Jens Holstein – EVP Advisory at Pexapark – joins Luca Pedretti to explore the state of co-location. Enjoy a discussion on themes including:

  • Why co-location is becoming the “route to market” for solar as standalone PPAs struggle
  • Hybrid PPAs and enhanced profiles: using one battery cycle to shift solar output from noon to evening, lifting capture rates from ~60% to 90%.
  • Market outlook: Germany and the Netherlands lead on volatility-driven value, GB favors separate contracts, while Spain and Italy remain subsidy- and auction-driven
  • Early but fast growth: ~3 GW of co-located capacity contracted in 2025 vs 14.5 GW standalone, with two-thirds of new GB solar projects now co-located
  • Repowering as the next wave: hybridizing older German wind sites with solar and batteries

 

Listen now:

Episode breakdown:

  • 0:00 – Intro
  • 1:08 – Regulation
  • 5:29 – Deals & Prices
  • 9:47 – Wider Energy World
  • 12:21 – Interview with Jens Hollstein