PC_2024_E_06 - Public consultation on the introduction of voluntary templates for Power Purchase Agreements in the EU energy market

Status
Closed
Open:
20.06.2024
Close:
18.07.2024
Policy area
Electricity market regulation
Contact information
Audience
Energy producers, utility companies, traders, off-takers/corporate energy buyers, legal services, advisory services, TSOs, DSOs, NEMOs, portfolio managers, academia, think tanks, and others.

Contact information

Overview

What are Power Purchase Agreements?

Power Purchase Agreements (PPAs) are contractual arrangements between electricity producers (frequently renewable energy generators) and buyers. By providing renewable electricity at mutually agreed rates, these contracts foster stability for both parties and promote the adoption of renewable energy sources (RES).

In accordance with the EU Regulation to improve the Union’s Electricity Market Design (EMD), which was adopted by the Council of the EU on 21 May 2024, Member States shall implement policies and measures to promote the uptake of PPAs by removing unjustified barriers and disproportionate or discriminatory practices. This contributes to improving energy pricing predictability and helps meet national climate and energy targets.

Why we are consulting

The EMD mandates ACER to assess the need to develop and issue voluntary templates for PPAs. As ACER’s assessment must reflect the needs of the different parties, it is key that this is done in coordination with the relevant institutions and stakeholders.

For this reason, ACER is consulting (from 20 June to 18 July 2024, 17:00h CET) to gather inputs from interested stakeholders and ensure an informed and inclusive decision-making process.

ACER will consider the feedback received in the consultation and the conclusions reached by the consultative expert group when evaluating the need to create voluntary templates for PPAs.

Next steps

The public consultation will run from 20 June to 18 July 2024 (17:00h CET).

If the assessment (expected in Autumn 2024) highlights the need to develop templates for PPA contracts, ACER, together with all Nominated Electricity Market Operators (NEMOs), will start the process in Winter 2024.