An increasing number of utility and non-utility corporates are aiming to meet part, or all, of their energy demand through renewable energy (RE) sources. Several options exist, but many are exposed to price risk due to market fluctuations and changing regulations across the EU.
Buying electricity directly via long-term RE commercial power purchase agreements (RE cPPAs) is one option, but it presents challenges for both providers and users. RE cPPAs are a market-based instrument that can promote the energy transition, but only a small number have been signed to date and the market is still relatively underdeveloped in Europe.
The EIB, with funding from the European Investment Advisory Hub, has contracted Baringa Partners LLP to undertake a comprehensive market study to better understand the drivers and barriers of the RE cPPA market, identify the difficulties RE projects are facing to attract financing based on cPPAs, and propose financial and non-financial instrument(s)/solution(s) to support the uptake of more RE cPPAs.
The research will be carried out in cooperation with technical experts from the EIB and include a consultation with key stakeholders such as corporates, banks, investors, and RE companies across Europe to inform the findings.
The study will be shared with the European Commission (EC) and is aimed to enable better identification of areas that would benefit from support of the EIB as well as other EU financial instruments and support mechanisms to complement and attract private sector finance.
Read the full news here.