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Power Purchase Agreement (PPA)
European Union Electricity Market Glossary

 

In a Power Purchase Agreement (PPA) a buyer generally agrees to take off power from a producer at conditions agreed in advance. 

 

“Renewables power purchase agreement” is defined in Article 2(17) of Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (recast). According to this provisions it means “a contract under which a natural or legal person agrees to purchase renewable electricity directly from an electricity producer”.

 

A specific variant of a standard PPA is sleeving/third party netting, i.e. a PPA between a licensed supplier and a producer, which links the generation directly to the customer (it is used by non-residential producers or prosumers wanting to sell electricity directly to a final customer).

 

European energy market regulators (Regulatory Aspects of Self-Consumption and Energy Communities, CEER Report, Customers and Retail Markets and Distribution Systems Working Groups, 25 June 2019, Ref: C18-CRM9_DS7-05-0, p. 17) observe that in this instance the role of a licensed supplier is to emulate a peer-to-peer trade sharing arrangement by taking the electricity in question into its balancing perimeter and delivering it to the final customer. In that respect, the involved supplier manages the imbalance risk of the exchange.

 

 

 

 

chronicle

Power Purchase Agreements (PPAs) - regulatory chronicle

  

 

 

 

3 October 2019

 

New toolkit launched to accelerate corporate sourcing of renewables in Europe

 

Re-Source, Introduction to Corporate Sourcing of Renewable Electricity in Europe

 

25 June 2019

 

Regulatory Aspects of Self-Consumption and Energy Communities, CEER Report, Customers and Retail Markets and Distribution Systems Working Groups, Ref: C18-CRM9_DS7-05-03

 

18 June 2019

  

EFET publishes the standard form for Corporate Power Purchase Agreement

 

 

 

 

 

 

IMG 0744

    Documentation    

 

 



Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (recast), Article 2(17)


Power purchase agreement structures, WBCSD,

https://www.wbcsd.org/contentwbc/download/4468/60118

Corporate Renewable Power Purchase Agreements: Scaling up globally, WBCSD,

https://www.wbcsd.org/contentwbc/download/4468/60118

 
Virtual PPA contracts - qualification under MiFID and its consequences, Tadeusz Zieliński

 

IFRS accounting outline for Power Purchase Agreements, WBCSD, January 2018
http://docs.wbcsd.org/2018/01/IFRS_accounting_outline_for_PPA.pdf

 

 

 

 

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    Links    

 

 

 

 

 

EFET standard form for Corporate Power Purchase Agreement

 

Renewable Energy Buyer’s Toolkit

 

REMIT reporting - Power Purchase Agreements (PPAs)

 

European Corporate Sourcing Directory

 

Piclo

https://piclo.energy

 

sonnenCommunity 

https://sonnengroup.com/sonnencommunity/

 

Vandebron 

https://vandebron.nl/energie

 

Micro Grid Sandbox Brooklyn 

https://www.brooklyn.energy

 

RE100 

 


 

Last Updated on Sunday, 01 March 2020 10:09
 

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