RE-Source Platform presented the policy proposals at a recent event in the European Parliament, co-hosted by MEP Giorgio Gori (S&D, Italy). The industry-led coalition brings together renewable energy buyers and sellers across Europe.
PPAs feature in the Clean Industrial Deal and the Affordable Energy Action Plan. The paper defines PPAs, outlines the drivers and enablers of their development, and identifies remaining challenges across Europe, along with potential solutions to address them.
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PPA activity is strongly influenced by political and broader energy system conditions. The potential is significant – business and policymakers must work together to unlock private financing for renewable energy and industrial decarbonisation.
Key recommendations
Key recommendations of the new corporate PPA guide include:
Unlocking renewables enablers: speed up permitting, unlock grids, and avoid changing electricity market design rules.
Risk reduction: rapidly deploy storage, accelerate electrification, and combine renewable technologies to reduce exposure to negative prices.
Focusing on non-distortive measures: ensure PPAs are recognised in EU carbon accounting, avoid regulating contract terms, implement state-backed guarantee schemes to reduce credit risk, design non-distortive state aid measures aligned with PPAs, and modernise the guarantee of origin and energy certificate system.
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Removing renewables bottlenecks
“In the recent European Parliament resolution on energy-intensive industries, for which I served as rapporteur, I called on the Commission to urgently address the barriers hindering the spread of long-term contracts, particularly for SMEs. This is essential to reduce energy price volatility and costs for European industry. We need public guarantee instruments to facilitate the matching of supply and demand and to reduce reliance on daily markets, which are heavily influenced by gas prices. In the short and medium term, this is the most effective way to decouple the price of electricity from that of fossil fuels,” said Giorgio Gori, MEP.
Battery storage strengthens PPA resilience
“Policymakers must focus on removing renewables bottlenecks and ensuring regulatory stability. Then we will see more PPAs being signed,” said RE-Source Managing Director Annie Scanlan. (hcn)
