Today’s discussion at the 2nd Regional RE-Source Croatia conference, dedicated to the development of Power Purchase Agreements (PPAs), will focus on how to green and at the same time improve business operations to ensure a sustainable and secure future for all. This year, the conference has again gathered over 300 participants from Croatia and the region. They understand that the key to the green transition lies in PPAs, i.e., contracts for the purchase of electricity between two corporations – those that need electricity and those that produce it, but from renewable sources.
The Renewable Energy Sources of Croatia Association (RESC) is the holder of the RE-Source platform for Croatia and the region as a place of knowledge and exchange of experience on PPAs. Our goal through this platform is to support companies in building their business competitiveness based on affordable, emission-free electricity from renewable sources. We also want to highlight all the advantages and challenges of such contracts through such gatherings of relevant sectors, from energy to legal, banking, and entrepreneurial.
The conference was opened by Maja Pokrovac, RESC Managing Director:
“Markets for renewable electricity are growing and maturing across Europe while on the other hand, energy-intensive industries, SMEs, cities, and local authorities are actively exploring ways of electrification for their own needs. It is therefore not surprising that there is interest in collaboration between these sectors with the aim of buying or selling green energy at a pre-agreed price. PPAs also offer companies the opportunity to decarbonize their electricity supply through a joint project to create a new renewable energy RE project.”
Annie Scanlan, Policy & Impact Director at the European RE-Source platform, presented data on the development of PPA contracts for the last year at the beginning of the conference:
“In 2023, PPA contracts saw an increase of 40% compared to the previous year, with a remarkable 10.4 GW of new renewable energy capacities achieved. This undoubtedly indicates an increasing momentum of demand for renewable sources among European companies. The sectors of the largest corporate buyers of renewable energy in Europe in 2023 were led by heavy industry, followed by ICT, retail, telecommunications, and engineering and technology.”
The Ministry of Economy and Sustainable Development is the sponsor of this year’s RE-Source Croatia conference, so before the start of the discussion itself, State Secretary in the Ministry, Ivo Milatić, emphasized:
“The topic of PPA contracts is important for the European Union and our country because they are one of the directions for ensuring the stability of electricity supply, especially for large consumers such as the intensive industry or ICT sector, but also for renewable energy producers. These contracts are a tool for Croatia to stop importing electricity. They are also important because, due to the large amount of renewable energy at certain times of the day and the large capacities that will be installed on the field, we will have to have an adequate market response in terms of pricing. In the new design of the electricity market that the European Commission is preparing, PPAs will be an integral part of the legislative solutions that we will also transpose into our legislation.”
A novelty of this 2nd Regional conference is the B2B meetings within the conference itself, for which a separate space is provided. Such meetings offer a unique opportunity for buyers of renewable energy and producers of clean energy to connect and find potential new partners for cooperation, to secure their own energy needs.
PPA contracts are a key element in achieving a long-term secure supply of energy from renewable sources, but also in the stronger development of renewable energy sources, which is important for the country and the goals it has set in its strategy.
