As solar and wind capacity continues to expand, traditional Power Purchase Agreements (PPAs) are coming under pressure, but Battery Energy Storage Systems BESS are changing that dynamic by adding flexibility, new revenue streams, and better risk control.
Negative prices and cannibalization effects are making long-term planning for conventional PPAs more complex. In 2024 alone, almost 19 GW of new renewable capacity in Europe was contracted through Power Purchase Agreements, mainly from solar and wind, with corporate PPAs accounting for approximately 70 percent of these agreements—driven largely by off-take from IT companies and data centers.
At the same time, falling capture prices are putting pressure on fixed-price agreements. When large volumes of solar power are fed into the grid at midday, wholesale prices fall and can even turn negative. For PPA structures, this necessitates a more robust hedge against market volatility. Today’s off-takers are not just looking for sustainable electricity; they want long-term economic predictability that helps them remain competitive.
BESS as the New Standard
Against that backdrop, the battery market is expanding rapidly. Around 21.9 GWh of new battery energy storage capacity was installed in Europe in 2024, bringing the total to 61.1 GWh. By 2029, annual installations are expected to increase almost sixfold to nearly 120 GWh. The same trend is visible in power terms: Europe’s battery portfolio currently stands at roughly 10 to 11 GW and is projected to exceed 50 GW by 2030, supported by investment of around EUR 80 billion.
Development in Central and Eastern Europe is particularly rapid. In countries such as Austria, Hungary, and Romania, solar capacity has grown by roughly 460 percent since 2019, while battery capacity rose by more than 470 percent between 2022 and 2025 alone. Solar and storage are increasingly being developed together, and Enery has already combined major battery systems with PV parks in several markets.
Renewable Power Becomes More PPA-Ready
In the PPA context, the core role of BESS is flexibility. Electricity no longer has to be sold at the exact moment it is generated. Batteries allow output from hours of low or negative prices to be shifted into periods of higher demand and stronger pricing. The closer a delivery profile comes to matching actual consumption, the more valuable it becomes for off-takers. Analysis indicates that a solar park featuring co-located storage—when actively optimized—can increase revenues by as much as 25 percent compared to standalone PV projects.
Comprehensive Risk Protection
As the number of zero-price and negative-price hours continues to rise, flexible assets are becoming strategically essential. Batteries can absorb electricity during such periods instead of forcing generators to sell cheaply or even pay to inject power into the grid. Hybrid PPAs therefore reduce risk not only for the producer but for the buyer as well. Co-located storage smooths delivery profiles and cuts imbalance costs, while also opening up additional revenue streams beyond physical supply to the off-taker. Just as importantly, more stable cash flows and a broader earnings base make projects easier to finance.
Put simply, a PPA without storage can protect against price spikes. A PPA with storage enables market participants to capitalize on these fluctuations.
The Direction of Travel Is Clear
Despite the current boom, the combination of PPAs and battery storage is still at an early stage. According to Wood Mackenzie, today only a relatively small share of utility-scale storage in Europe is directly coupled with renewables. Nevertheless, the direction of travel is unmistakable. For energy-intensive customers—from breweries to data centers—the most attractive offers will increasingly be those that combine reliable green electricity with genuine flexibility: a long-term PPA backed by an intelligent storage concept.
Enery has long been committed to this strategic trajectory. Projects such as those in Rummu, Estonia, and the partnership with Teva Pharmaceutical Industries demonstrate the company’s pioneering role at the intersection of battery storage and PPAs.