ACER will consult on the introduction of voluntary templates for Power Purchase Agreement contracts in the EU energy market
ACER will consult on the introduction of voluntary templates for Power Purchase Agreement contracts in the EU energy market
What is it about?
On Thursday 20 June, ACER will launch a public consultation to gather stakeholders’ views on the benefits and drawbacks of introducing voluntary templates for Power Purchase Agreement (PPA) contracts in the EU energy market.
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 has been 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 should contribute to improving energy pricing predictability and help meet national climate and energy targets.
Why the need for a consultation?
The EMD mandates ACER to assess the need to develop and issue voluntary templates for PPAs. As ACER assessment must reflect the needs of the different parties involved, it is key that this is done in close coordination with relevant institutions and stakeholders.
For this reason, ACER will run a public consultation (from 20 June to 18 July 2024) to gather inputs from interested stakeholders and ensure an informed and inclusive decision-making process.
What are the next steps?
The public consultation will run from 20 June to 18 July 2024.
As a follow up, ACER will evaluate the feedback received in the consultation and the conclusions reached by the consultative expert group established in May 2024.
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.