The European Commission has presented a guide to EU Member States on how to deal with the current high gas and electricity prices, which includes power purchase agreements (PPAs).
The commission has encouraged Member States to facilitate wider access to PPAs beyond large businesses, including through the aggregation of end-user demand, in compliance with competition rules, said WindEurope.
Corporate renewable PPAs can protect European businesses from volatile market developments.
They are typically signed over long periods, guaranteeing corporate consumers a fixed electricity price and hedging against market risks.
WindEurope chief executive Giles Dickson (pictured) said: “The European Commission has singled out PPAs as a key part of their ‘toolbox’ of measures to tackle the current situation in energy markets.”
He said the commission has “underlined how PPAs help ensure stable and affordable electricity prices for Europe’s businesses and proposed a raft of measures to facilitate PPAs”.
Walburga Hemetsberger, SolarPower Europe CEO, added: “The current energy price crisis demonstrates the urgent need for businesses to invest in reliable, low-cost renewable electricity.
“The European Commission has recognised the strategic importance of renewable power purchase agreements for the continent and we look forward to the commission’s additional guidance on PPA frameworks to Member States before 2023.
“The good news is that PPAs and on-site sourcing is booming in Europe, for yet another record-breaking year.
“We can go even further and faster by accelerating the development of regulatory frameworks for PPAs, taking enabling measures like standardised contracts and creating incentives for end-users.”
With months to go, the volume of PPAs signed in 2021 has already surpassed the 3.5GW signed in 2020, making 2021 the eighth record year in a row.
European Commercial and Industrial on-site installations are also enjoying rapid growth, with forecasts showing they could reach a total capacity of 407GW by 2030.
The current surge in energy prices is likely to further increase the demand for corporate renewable PPAs as businesses look to hedge against volatile energy prices, WindEurope stated.