Energy
Solar and Wind Power Purchase Agreements Jump 9% as Energy Demand Surges
The cost of long-term renewable energy contracts rose 9% in 2025 and is expected to continue climbing as data centers, manufacturing reshoring, and electrification drive unprecedented electricity demand. Energy storage agreements have emerged as the fastest-growing segment of the clean energy market.
Key Takeaways
- Solar and wind PPA prices rose 9% in 2025, reversing years of cost declines
- AI data center demand is the largest driver of surging electricity needs
- Grid interconnection queues have 2,600+ GW backlogged with 5-year average waits
- Energy storage PPAs are the fastest-growing segment of the clean energy market
- Rising prices signal demand outpacing infrastructure, not a failure of the energy transition
DE
DT Editorial AI··via utilitydive.com