By ESS news
In a record year for flexibility in Europe, nearly 12 GW/24 GWh of BESS capacity was contracted under flexibility purchase agreements (FPAs) and optimization agreements, tripling the volume recorded in 2024, according to Pexapark’s Renewables Market Outlook 2026. FPAs have emerged as the backbone of BESS’s bankability, unlocking infrastructure-style capital and enabling rapid expansion outside Great Britain to Germany, Italy and the Netherlands is made possible.
Contract innovation accelerated, with tolls, floors and financial structures such as day-ahead swaps becoming mainstream, while new buyer profiles – including traders, insurers and hedge funds – entered the flexibility market. In contrast, traditional European PPA momentum cooled in 2025 as markets adjusted to lower earnings expectations. Total disclosed contracted PPA capacity fell to 13.1 GW across 247 deals, compared to 15.3 GW in 2024.
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