PPAs: Das essenzielle Puzzleteil für den weiteren EE-Ausbau

PPAs accelerate the expansion of renewable energies

The current debate space has a blind spot. Power purchase agreements (PPAs) ensure the speed of expansion, as well. As essential as the discussion about the further development of the future subsidy framework is, the PPA market has enabled significant investments in renewable energies in around four years. Which means the future potential is high. PPAs accelerate the expansion of renewable energies with capital from the private sector, strengthen the market and system integration of renewable energies and ensure sufficient liquidity in European markets. At the same time, they offer companies security in terms of hedging electricity prices and leverage when decarbonising their own value creation. This central pillar must also be given the corresponding status in Germany using the adopted European electricity market design and the priority given to market-driven expansion as a starting point. It is therefore important to consider the key levers for market-driven expansion when discussing market design in Germany.

Consider strengthening the PPA market as an integral part of the electricity market design and address barriers

Barriers in the German PPA market should be actively removed in order to utilise private financing for the further expansion of renewable energies and to further facilitate the supply of green electricity for companies. For example, tax incentives should be created in future for the purchase of unsubsidised green electricity within the scope of the European Tax Directive. At the same time, energy labelling and the system of guarantees of origin should be used to strengthen additional investment in renewable energies. Barriers must be also addressed directly. This includes, for example, the legally compliant structuring of the IFRS financial reporting requirements with regard to different PPA types.

Risk minimisation for the expansion of renewable energies beyond the Renewable Energy Sources Act

Financing models beyond state subsidy models must be strengthened by appropriate risk protection. This is necessary in order to create a broader basis for investments in renewable energies, even among small market players. For example, a guarantee could minimise the default risk of the buyer while reducing the financing costs for plant operators. The market offensive will draw up proposals for the specific organisation based on the experience of other European countries.