The length of Power Purchase Agreements (PPAs) for small hydro energy in France was steady at 20 years in 2023. In the forecast period from 2024 to 2028, the length is expected to increase gradually, reaching 22 years by 2026 and stabilizing at that level through 2028. Over the last two years, there's a noticeable step-up in agreement durations, with minor year-on-year increases. The Compound Annual Growth Rate (CAGR) over this period is approximately 1.8%.
Future trends to watch for include potential regulatory changes affecting small hydro projects and the evolving energy mix in France that might influence PPA terms. Additionally, advancements in technology and cost dynamics could impact future agreement lengths and market strategies.
