A standard PPA contract for the German market has been published by the Renewable Energy Market Offensive to assist smaller companies and municipal utilities in particular when concluding an offtake agreement.
The direct purchase of green electricity plays a central role for many companies in integrating price security and decarbonization into their business model.
However, concluding direct electricity supply contracts is currently a major challenge, especially for smaller companies and municipal utilities due to a lack of personnel capacity and expertise, the Renewable Energy Market Offensive, part of the German Energy Agency (DENA), said.
The contract template offers these organisations the opportunity to conclude a supply contract even without in-depth knowledge of PPA contract types and electricity market effects, it added.
Specifics of German law and electricity trading are reflected accordingly and the associated guidance notes provide information on key aspects and design options.
Tibor Fischer, spokesman for DENA’s Renewable Energy Market Offensive, said: “A growing PPA market can reduce energy costs for companies, promote climate-friendly business models and thus advance the energy transition more quickly overall.
“With the standard contract presented, the market offensive strengthens this business model and also opens the market to smaller customers.
“The market offensive also supports the federal government’s strategy, which also wants to support the development of standards in this area.
“With greater transparency and standardization, the contract strengthens this important segment of the energy market.
“The market offensive therefore also fulfills a central requirement of the Renewable Energy Directive at EU level, which stipulates that member states should facilitate market access through the standardization of contracts.”
The customizable text of the contract allows customers to conclude a PPA with an electricity marketer.
In order to be able to integrate the delivery well into existing contract constellations and to simplify management, the contract was based on a tape delivery as a profile.
This means that the company receives the same amount of electricity from renewable energies at all times.
Fluctuations in production within this contractually agreed delivery do not have to be regulated via corresponding contract options.
The PPA delivery tape contract template was created in cooperation with EFET Germany, the law firms of Bredow Valentin Herz, DLA Piper and gunnercooke as part of the renewable energy market offensive.
The customisable contract template and the associated guidance notes are now available on the Renewable Energy Market Offensive website.