In Europe, although renewables reached nearly half of all generation in 2025, structural volatility and price cannibalisation became “persistent, systemic” features of the market, Pexapark said. The result is what Pexapark said would be a fundamental reappraisal of the commercial value of renewables assets. The changes predicted by Pexapark are illustrated by the growing dominance of flexibility purchase agreements (FPAs) in Europe. By contrast, traditional power purchase agreement (PPA) momentum in Europe “cooled”, Pexapark said, falling from 15.3GW in 2024 to 13.1GW in 2025. For independent power producers (IPPs), Pexapark said the traditional business model was being “rewritten” and the emphasis moves downstream.