Recording of Wednesday, June 19, 2024 | The smarter E Europe 2024 | Conference Program | Language: English | Duration: 32:51 .

Discussions Highlight Challenges and Strategies in Expanding Access to PPAs for Renewable Energy Sourcing

The recent discussions have highlighted the complexity involved in expanding renewable energy and its implications for Power Purchase Agreements (PPAs) within EPA markets. Initially, EU regulation aimed to promote PPAs without directly regulating them, encouraging a market shift towards long-term contracts over short-term ones. This strategy was intended to broaden PPA access beyond large companies with dedicated energy departments to include smaller industrial firms. One significant barrier is credit rating; securing bankable long-term contracts can be challenging without robust financial backing. To address this, regulations mandate member states provide financial instruments or state guarantees, a model that has seen success in Spain and could potentially extend across the EU via entities like the European Investment Bank. Mauricio underscored rising demand driven by IT data centers and ESG targets from corporate buyers willing to pay premiums for renewable sources. He also argued that auctions complement rather than compete with PPAs in developing renewables. Challenges such as aged infrastructure necessitate grid upgrades for technical curtailments while economic curtailments can be managed through PPA negotiations. Long negotiation periods of 6-12 months due to lack of standardization and experience pose risks due to price volatility and resource consumption during these extended timelines. Overall, enhancing accessibility, streamlining processes, and improving regulatory frameworks are crucial for advancing sustainable energy solutions through PPAs.

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Speakers

Ignacio Asenjo
Policy Officer
European Commission
Belgium

Mauricio Garrido
Director of PPA Origination for Centralized Generation Europe
EDP Renewables
Spain

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

Charting the Course: Insights Into European Solar Power Purchase Agreements

Speaker

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

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