NSR PPA and Green Gas Markets Update: April 2025

Green Gas Markets Surge by 4.8% – PPA Prices Climb 3.5%

The latest Power Purchase Agreement (PPA) and green gas market trends show significant price movements. Yesterday, strong solar energy generation and favourable wind conditions caused negative power pricing during peak demand. Some blocks traded at day-ahead (D-1) levels, reinforcing renewables’ impact on market dynamics.

This morning, solar energy contributed approximately 12% of the UK’s electricity demand. With increased solar penetration and fluctuating wind patterns, market participants should expect continued volatility in PPA pricing.

European Gas Markets React to Maintenance & Storage Data

Meanwhile, the broader energy market experienced upward price pressure as Norway’s Nyhamna gas processing facility began its annual maintenance cycle. This development influenced both the National Balancing Point (NBP) and Title Transfer Facility (TTF) gas markets, leading to price increases.

As of this morning:

• NBP front-month gas trades at 102p per therm
• TTF gas prices have risen slightly to €42.65 per MWh

Additionally, European gas storage facilities report that current inventories stand at 33% capacity, significantly lower than the 59% level recorded at this time last year. This sharp decline in storage reserves continues to support strong pricing across the European energy landscape.

EU Draft on Gas Storage & Implications for PPA Markets

The European Union (EU) published a draft proposal to extend existing rules for gas storage injections and inventory management. The proposal maintains the 90% storage target by November 1st, which will likely sustain upward pressure on European gas prices over the coming months.

This regulatory outlook directly affects the PPA market, as gas price movements influence power prices. Given the correlation between gas and renewable energy contracts, stakeholders in the PPA sector should prepare for market valuation shifts.

PPA Market Performance: Key Insights for Energy Buyers & Sellers

The PPA market continues to shift in response to broader energy fundamentals. As gas prices climb and renewable penetration fluctuates, long-term power agreements experience heightened volatility. Yesterday’s trading activity highlighted how quickly market conditions change, emphasising the importance of real-time data analysis for energy procurement strategies.

In summary:

• Green Gas markets closed 4% lower than the previous day.
• PPA market valuations declined by 3%, reflecting adjustments in energy price expectations.

As the energy transition accelerates, businesses engaged in PPAs must stay ahead of price movements. Understanding how gas storage, EU policy decisions, and renewable generation impact pricing remains essential for securing favourable agreements.

Looking Ahead: What to Expect in the PPA & Green Gas Markets?

The PPA market will remain highly dynamic with increased renewable energy integration, evolving regulatory frameworks, and seasonal demand fluctuations. Businesses securing long-term PPAs should monitor these developments to optimise procurement strategies and mitigate risks associated with energy price volatility.

If you have any questions regarding PPA contracts, market trends, or the latest developments in the green gas sector, reach out to Fran or me. We’re here to help navigate today’s energy landscape.

Jamie Banks
PPA Manager at New Stream

Thanks,
Jamie