Wind power purchase agreement (PPA) prices continued to rise in the USA but remained largely stable in Europe during the third quarter of 2025, according to LevelTen Energy. In the USA, wind PPA prices increased by nearly 5% over the quarter and 14% year on year. The rise reflects growing development costs and tighter federal oversight of new wind projects.
Recent policy changes have introduced additional review requirements for onshore wind farms on public and federally regulated private land, with the Interior Department revoking some approvals issued under the previous administration.
Rising costs linked to Section 232 tariffs on steel, aluminium, copper and other key materials are adding further pressure, alongside a federal investigation into critical minerals that could result in new levies. Developers are responding by seeking greater flexibility and risk-sharing in PPA negotiations. While both wind and solar projects are affected by cost inflation, wind developers face additional challenges related to policy and compliance processes, sustaining upward pressure on prices.
In contrast, European wind PPA prices declined only marginally, by 0.1% in the same period. The figures suggest that Europe’s wind sector is regaining stability after several years of disruption caused by pandemic-related constraints, slow permitting, and community opposition.
Seven European wind markets recorded enough trading activity to appear on LevelTen’s Wind Index — the most in over a year — with Portugal joining for the first time, reflecting renewed progress in southern Europe. Wind prices in Europe have proven more resilient than solar, which continues to face price cannibalisation and weak wholesale prices in markets such as Germany and Spain.
With renewable supply currently exceeding demand, European PPA buyers are well placed to secure long-term wind contracts, particularly as hybrid projects combining wind and storage become more common.
