PC_2026_E_05 - Public consultation on developments and initiatives in the EU Power Purchase Agreements market

What are Power Purchase Agreements? 

Power Purchase Agreements (PPAs) are long-term contracts between electricity producers (often renewable energy generators) and buyers. By providing renewable electricity at mutually agreed rates, these contracts foster long-term price stability and investment predictability for both parties. This helps reduce exposure to market volatility and encourages investments in renewable energy, limiting reliance on subsidy schemes. 

Under the revised Renewable Energy Directive, Member States are required to facilitate the uptake of renewable PPAs by removing unjustified barriers and disproportionate or discriminatory practices. PPAs protect buyers against price volatility and the long-term nature of these contracts helps meet national climate and energy targets. However, the availability and functioning of PPAs vary significantly across the EU, reflecting differences in national regulatory frameworks and financing mechanisms.

Under the EU Electricity Market Regulation, ACER is responsible for monitoring the PPAs market and publishing an annual assessment of its development at both EU and Member State level. 

To strengthen its monitoring, ACER is launching a consultation to identify key regulatory, market and financial factors affecting the development and functioning of PPAs across Member States. Stakeholders are invited to provide input on existing initiatives and challenges in the countries where they operate, including:

• availability of State-backed guarantees;
• existence of PPAs platforms;
• tax incentives supporting PPAs; and 
• the role of international carbon accounting standards for energy consumers.

Privacy statement.

The public consultation will run from 31 March to 8 May 2026.

ACER will examine the feedback received and use it to inform its 2026 annual assessment on the EU PPAs market.