Corporate Renewable PPAs could power business all over Europe

Published on Thursday, 12 October 2017

“We’re starting to see industry in general realize that this is just not the right thing to do, but it’s good business as well.”

– Gary Demasi

Companies wanting zero-carbon power need to be able to trace the supply and prove that it's renewable. They also need to value additionality criteria if they have been explicitly investing in new RES capacities, therefore contributing to the achievement of EU’s overall targets.

To do this they need functioning Guarantees of Origin (GOs) that are effectively linked with RES producers and a system that values investments in additional renewable capacities.

“Enel Green Power has extensive experience with green PPAs across the globe, which include corporate PPAs signed in the Americas, with clients like General Motors, Google, T-Mobile and Anheuser-Busch.”

– Javier Vaquerizo, Head of Commercial Office at Enel Green Power

“Moving on from the successful implementation of corporate PPAs by renewable players worldwide, this model could be the next way to boost economically and environmentally sustainable renewable energy generation projects in Europe under a sound regulatory framework” said Javier Vaquerizo in his speech at RE-Source 2017.

The European Commission’s proposal for a Renewable Energy Directive is insufficient in this regard, and this must be tackled by the European Parliament and Council in the next phase of the negotiations. 

Furthermore, in many countries including Germany, it's a grey area as to whether the law actually allows for PPAs. The new Renewables Directive would require governments to remove legal barriers to PPAs.

A better legal framework would help PPAs spread into other markets, whilst more flexible contracts catering to the needs of SMEs would enable PPAs to flourish beyond the major corporates.