Recording of Wednesday, June 19, 2024 | The smarter E Europe 2024 | Conference Program | Language: English | Duration: 11:36 .

Navigating PPA Procurement: Insights on Improving Deal Success and Streamlining Processes Amid Market Shifts

Lars Schmidt, a partner at EY with 15 years of experience in the energy industry, discusses challenges and strategies for Power Purchase Agreement (PPA) procurement. Despite increasing PPA adoption, many deals fail due to complexities and misalignment between developers and corporate off-takers who don't regularly engage in such transactions. Schmidt emphasizes the importance of proper requirement definition at the outset to set economic, sustainability, and implementation goals. He notes that contract negotiations often stall due to hesitancy from decision-makers unwilling to pay green premiums amidst fluctuating market prices. The process typically spans about six months if managed well but can be prolonged by issues such as grid delays or lack of governance. SMEs entering the market complicate matters further by demanding new products like smaller volume baseload PPAs. Schmidt advises involving all relevant stakeholders early—procurement, legal, treasury, ESG departments—as their absence can derail projects. Clear governance is crucial for smooth execution given PPAs' strategic value and significant monetary implications. Treating PPA procurement as a dedicated project ensures better alignment and increases chances of success through defined roles and thorough preparation before negotiation stages commence.

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Speaker

Lars Schmidt
Partner
EY
Germany

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

Panel Discussion

Speaker

To Talk