On July 23, 2020 the Spanish Asociación Empresarial Eólica (AEE) hosted the webinar «Power Purchase Agreement (PPA) – A European Perspective» presented by Alistair Carrington, PPA Structuring Manager Europe and SSA at General Electric (GE). The links to the webinar and to the slides presented can be found on AEE webpage and below:
Some of the most interesting take-aways I found in the webinar are:
● PPA are becoming increasingly common among corporate buyers across European markets;
● COVID-19 has caused a drop in European wholesale energy prices, whether temporary or structurally yet to be seen;
● Innovations to PPAs are being brought to the European markets by US players (e.g. Proxy PPAs and Volume Firming Agreements);
● PPAs and auctions can coexist in the same market; there is a secondary PPA market for those projects that do not qualify in auctions;
● Lowest PPA prices in Europe are found in Nordic markets due to high penetration of hydro and wind. However, PPA prices in Spain are quite close, in spite of a different generation matrix more dependent on fossil fuels.