Last year’s abrupt rise in electricity prices particularly impacted the industrial sector. Companies with high energy needs were at a distinct disadvantage, and even those building their own renewable energy projects, such as rooftop solar power plants, often couldn’t cover all their consumption with self-generated energy. Those without their own energy production were entirely market-dependent. One solution, which many companies globally use to cover up to 100% of their needs, is purchasing enough electrical energy from renewable sources directly from the producer. More companies in Croatia are choosing this option, and they contract the purchase through Power Purchase Agreements (PPA). These agreements ensure a fixed electricity price and are signed for periods ranging from five to twenty years, offering far greater security than buying energy at fluctuating market prices. These agreements have become so popular that there are conferences devoted entirely to them, attracting thousands of participants.
RE-Source Platform Conferences
The RE-Source Platform, a leading European organization focused on developing PPA contracts, held its first RE-Source conference in 2017. This year, they are hosting their seventh conference.
PPA contracts are extremely important for renewable energy development, enabling consumers and producers of renewable energy to connect through a joint project to create a new renewable project, thereby approaching banks. Gigawatts of new renewable projects have been built in Europe, thanks to these agreements. Data also show that the total contracted capacity due to PPA contracts nearly doubled in 2022 compared to 2020.
Therefore, year by year, there is growing interest in conferences dedicated to PPA contracts. This year, an impressive 1,300 participants have signed up to attend the RE-Source2023 conference on October 26 and 27, 2023, in Amsterdam. Participants will discuss green energy procurement models, renewable project development, obstacles and barriers, as well as the vast potential offered by corporate contracts for green energy purchases through numerous panels. Representatives from the European Parliament, the European Commission, embassies, and international corporations such as Google, Amazon, Apple Inc, IKEA, and Microsoft regularly attend this extremely important conference. Without renewable energy source development, there can be no PPA contract development, so bank representatives and other financial institutions, as well as all major renewable energy producers, make it a point not to miss the conference.
RE-Source Croatia HUB at the RE-Source2023 Conference
Last year, RESC was a national partner of the conference, and it was a privilege for Croatia to open the RE-Source Platform 2022 conference in Amsterdam for the first time. Shortly after this conference, RESC became the national HUB of the RE-Source platform, that is, a place of knowledge and meeting for stakeholders in renewable energy sources dedicated to the development of PPA contracts in Croatia and the region.
As the bearer of the name RE-Source Croatia HUB, RESC organized the first RE-Source Croatia conference in Zagreb on March 17, 2023, with more than 300 participants.
RESC is also this year a proud national partner of the RE-Source2023 conference which places a special emphasis on the development of national PPA markets. The RE-Source Platform works with many national associations, with whose help numerous similar national conferences dedicated to the more qualitative development of PPA contracts have been organized. Along with representatives of the SEE HUB (Southeast Europe HUB) from Bulgaria on the panel ‘Market zoom in: Croatia & SEE’ at the RE-Source2023 conference, Maja Pokrovac, director of RESC, will also participate.
PPA Contracts for Citizens and Small and Medium Enterprises
The development of PPA contracts is extremely important, and the European Commission considers them to have a central role in Europe’s strategy to achieve the goals of the Green Deal. The revision of the European electricity market emphasizes the development of PPA contracts and underscores that they should be more accessible to all consumers, including small and medium enterprises and citizen initiatives.
Energy communities will play a significant role in the development of PPA contracts, and some have already begun this practice. For instance, a sports club in Portugal covers its needs with a rooftop solar power plant and has enough surplus electricity to share with families and companies within a 4-kilometer radius. However, they hired a third party to handle the administrative, technical, and organizational aspects of the project.
The state’s role is crucial here, and the European Commission envisages the establishment of special state funds that would serve as guarantees for creating such contracts, emphasized Naomi Chevillard from SolarPower Europe at the RE-Source Croatia conference.
The PPA market grows year by year, but it is important to remove obstacles and barriers. Regulatory uncertainty can bring instability to the PPA market, as was the case with last year’s setting of the upper revenue price for renewable source technologies. This sent the wrong signal to investments, and without new renewable projects, there are no new PPA contracts. Read more about the conference and the program HERE.
