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:
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