PPAs are medium-to long-term contracts that allow electricity
prices to be fixed and which guarantee the investor conditions of
financial stability to proceed with the investment. Looking ahead,
they can be a solution to high prices on the energy market and are
an attractive instrument when they are used to buy and sell
'green' electricity to promote the spread of renewable
energy.
In 2021, the European Commission approved renewable energy
purchase agreements (PPAs) as a response to the increase of energy
prices, not only for large companies but also for
self-consumption.
The main advantages of PPA contracts are:
- savings on investment costs for the construction and
maintenance of the plant;
