Insights

The once-frenzied corporate rooftop self-consumption PPA market in Southern Europe is entering a phase of consolidation. Following the explosive growth of 2022–2023 — driven by soaring electricity prices and generous public subsidies—the market is now settling into a more selective and demanding environment. Lower wholesale electricity prices, waning public attention, and the increasing complexity of asset management have led to reduced demand and fewer new installations.

A key driver behind this consolidation is the operational reality of managing decentralized energy portfolios. Many entrants underestimated the technical, regulatory, and financial sophistication required to meet bankability standards—especially in structuring contracts and ensuring robust performance ratios needed to attract debt financing. As a result, many are exiting or merging, leaving a smaller number of experienced asset managers.