Recording of Wednesday, June 19, 2024 | The smarter E Europe 2024 | Conference Program | Language: English | Duration: 11:08 .

PPA Market Sees Growth in 2023, Driven by Solar and New Policies Supporting Renewables

Victoria Santos, a research associate at RID McKenzie, presented an overview of the PPA (Power Purchase Agreement) market in 2023 and insights into future trends. In 2021, the PPA market saw record growth due to high corporate activity aimed at mitigating rising energy costs. However, this momentum dwindled in 2022 owing to retail price volatility and regulatory risks. The market rebounded in 2023 as energy prices stabilized and windfall caps expired. Key players Spain and Germany procured more than half of PPAs contracted; Spain sustained its top position for five years running while Germany experienced significant demand from industrial sectors. Greece emerged as a notable player due to supportive policies prioritizing renewable projects with PPAs for grid connections. In terms of technology, solar dominated with 60% of deals signed across Europe, especially strong in Germany's wind sector. Moving forward, policy reforms such as stricter reporting standards are expected to drive demand from diverse corporate entities including banks and insurance companies. Additionally, barriers hindering smaller players are being removed through credit guarantee schemes. The emerging hydrogen industry is anticipated to sustain long-term PPA demand despite being nascent now; its impact will likely be felt post-2030 onwards.

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Speaker

Victoria Santos
Research Analyst, Power and Renewables
Wood Mackenzie
United Kingdom

Talk of session: Corporate Power Procurement & PPAs: Lessons Learned about Powering Corporates using PPAs

Corporate renewable PPAs have become a strong pillar of the European solar market, growing by over 40% in 2023. The major share in this segment was solar power, with over 16 GW of contracted volume.

The new EU Electricity Market Design Directive supports this trend by requiring member states to remove all barriers to the development of PPAs and to design incentives, including government-backed guarantees.

The session will discuss:

• The PPA market today and tomorrow
• Overview of PPA products & background
• Corporate PPA case studies
• Legislative changes affecting solar PPAs

Further Talks of this session:

Welcome and Introduction

Speaker

Annie Scanlan
Policy & Impact Director
RE-Source Platform
Belgium

To Talk

Effects on Solar Capture Rates and Curtailment on PPAs in Europe

Speaker

Ignacio Garcia Vera
Energy Markets Senior Consultant
AFRY Management Consulting
Spain

To Talk

Bundling Onsite Solar PV With Battery Storage & PPAs to Unleash the Full Renewable Potential of C&I

Speaker

Eric Sebaoun
Business Development Director - Distributed Solar & Storage
Engie
Spain

To Talk

PPA Contracting and Negotiation Considerations

Speaker

Lars Schmidt
Partner
EY
Germany

To Talk

Panel Discussion

Speaker

To Talk