Posted by: Windfair Editors
PPAs Will Change European Electricity Markets
Official Press Release Scope Ratings:
European electricity: long-term, renewables-based power purchase agreements transform sector
Long-term contracts, known as power purchase agreements, are transforming how companies buy and sell renewables-based electricity in Europe with profound implications for the sector.
Scope Ratings says the surging demand for PPAs represents a profound shift in risk-bearing in the sector: from operators of unregulated renewable energy power plants (utilities, independent power producers and financial investors), on the one hand, to so-called off-takers, on the other. Besides energy suppliers, owners of generation assets increasingly find direct buyers with energy-intensive corporates. “For the seller of electricity under a PPA, the PPA can be considered a tool of risk transformation,” says Sebastian Zank, analyst at Scope. “For the off-takers, the... ... More: Official Press Release Scope Ratings
- Keywords:
- Scope Ratings, PPA, long-term, renewable energy, electricity, sector, power purchase agreement, analyst, benefit, Europe