RE-Source Platform statement on the EU Energy Minister Council of 9 September 2022
The RE-Source platform is committed to the accelerated transition to a clean and resilient renewables-based energy system in response to the current energy crisis.
Europe needs to double solar and wind deployment to counter the triple challenges of skyrocketing energy prices, energy security and decarbonisation needs. Renewable Power Purchase Agreements (PPAs) and renewables deployment more broadly will play a central role in coming out of the current crisis as a home grown, clean, competitive, and scalable energy supply. The corporate renewable energy procurement market is expanding rapidly across Europe, with more than 20 GW of renewable energy capacity contracted to date. PPAs represents 4% and 6% of total installed solar and wind capacity respectively.
If no explicit reference in the upcoming emergency energy regulation is made to excluding PPAs from revenue limitation measures such as price caps, we fear the renewable PPA market will stop in its tracks and long-term progress towards Europe’s energy goals will be severely stunted.
Any clawback measure for inframarginal technologies should not apply to assets contracted under renewable PPAs, and there should be an explicit carve-out for these contracts.
If renewable generators with PPAs are not safeguarded from clawback measures, we foresee the following effects:
· Developers may want to reopen existing contracts and make amendments to deals
· Negotiations for new PPAs and the deployment of renewable projects will stall
· Buyers will be disincentivised from signing long-term renewable energy contracts
· Investors will lose confidence in the financial return for current and future renewable energy projects.
PPAs can be a key mechanism to help achieve the REPowerEU targets. They will however not flourish without a stable regulatory and investment environment that fosters bankability and price stability. We urge you to ensure that this investment environment is maintained in any proposed electricity market changes.
About RE-Source Platform:
SolarPower Europe, WindEurope, RE100 and WBCSD established the RE-Source Platform to drive the uptake of PPAs and renewable energy investments. This is the first multi-stakeholder alliance in Europe bringing together the interests of clean energy investors, buyers and suppliers. This Platform pools resources and coordinates activities to promote a better framework for corporate renewable energy sourcing at EU and national level.
The RE-Source Platform also organises an annual RE-Source Event – the largest and most influential corporate sourcing event in Europe. The RE-Source Event brings together all the major PPA and on-site renewable energy players – from buyers to sellers to policymakers and more. The RE-Source 2022 event takes place on 6-7 October in Amsterdam.