Power Purchase Agreements Greece

Power Purchase Agreements in Greece: A Comprehensive Guide

In recent years, Greece has been making strides towards transitioning to renewable sources of energy. With ambitious goals to generate 35% of its electricity from renewables by 2030, the country is paving the way for a green energy revolution. One of the most important tools in achieving this goal is the use of Power Purchase Agreements (PPAs).

What is a PPA?

A PPA is a legally binding agreement between a renewable energy developer and a buyer, usually a utility company or a corporation, to purchase electricity generated by a renewable energy project over a specified period of time. The terms of the agreement will determine the price of the electricity, which is usually lower than the current market rate, making it an attractive option for buyers.

PPAs in Greece

PPAs have become increasingly popular in Greece due to the country`s favorable renewable energy policies and feed-in tariffs. These policies provide a stable regulatory framework for renewable energy projects and guarantee a fixed price for the electricity generated, making it a safe investment for developers.

One of the most significant PPA deals in Greece was signed in 2019 between the Hellenic Petroleum Group and Kiefer TEK. The agreement will see the construction of a 204 MW wind farm in Evia, with Hellenic Petroleum agreeing to purchase all the electricity generated by the wind farm for a period of 20 years.

Benefits of PPAs

PPAs provide a range of benefits for both renewable energy developers and buyers. For developers, PPAs provide a guaranteed revenue stream for their renewable energy projects, making them more attractive to investors. For buyers, PPAs offer a stable and predictable source of energy, at a lower price than the current market rate.

PPAs also provide a range of environmental benefits, as they encourage the development of renewable energy projects and reduce the reliance on fossil fuels. This, in turn, helps to reduce greenhouse gas emissions and combat climate change.

Conclusion

PPAs are an essential tool in achieving Greece`s renewable energy goals. They provide a stable regulatory framework for renewable energy projects, guarantee a fixed price for the electricity generated, and encourage the development of renewable energy projects. With the country`s ambitious goals to generate 35% of its electricity from renewables by 2030, PPAs will play a vital role in achieving this goal.

Tags: No tags

Comments are closed.