PPAs Main Challenges and Opportunities

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Recording of Tuesday, May 06, 2025 | The smarter E Europe Conferences 2025 | Conference Program | Language: English | Duration: 18:36 .

Navigating PPA Challenges: Overcoming Barriers in the Energy Transition with Innovative Solutions

The panel discussion focuses on Power Purchase Agreements (PPAs) and their critical role in the energy transition. The speaker highlights EDP's global presence, emphasizing that a significant portion of its installed capacity is supported by PPAs, which cover various commercial activities including off-site and on-site agreements complemented by storage solutions like thermal or hydrogen. Despite challenges such as geopolitical instability, regulatory uncertainty, capex volatility, high financing costs due to inflation rates, and interest rates—PPAs remain vital tools for both sellers seeking long-term price visibility and investment returns—and buyers aiming for ESG compliance with competitive cost advantages. Key barriers include renewable development risks linked to lengthy permitting processes beyond developers' control; creditworthiness concerns affecting project financeability; protracted negotiations consuming resources; appetite mismatches between solar cannibalization effects versus baseload contract expectations from renewables requiring hybrid structuring approaches combining wind plus solar offerings alongside battery storage options enhancing appeal among counterparties/offtakers willing accept innovative products amidst evolving market dynamics underpinned supportive regulations facilitating growth through interconnections/creditworthy mechanisms balancing PPA risk-sharing efficiently across stakeholders involved within this transformative sector landscape globally today.

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Speaker

Mauricio Garrido
PPA Origination Director EU
EDP Renewables
Spain

Talk of session: Corporate Power Procurement & PPAs - Navigating the Complexities of Renewable Electricity Sourcing

The European solar PPA market continues to thrive, with several major deals announced in recent months despite an increasingly complex and volatile power market. Corporations seeking a cost-effective, ESG-compliant electricity supply are pushing power suppliers to adapt by offering shorter-term, multi-technology PPAs and innovative contract structures. Navigating these complexities is key to securing a stable and low-cost energy supply at a time when European industry is struggling to remain competitive. This session will look at: Recent developments in Europe's solar PPA market Different PPA structures and emerging models Financial, regulatory, and contractual challenges in corporate PPAs.

Further Talks of this session:

Welcome & Introduction

Speaker

Nikola Gazdov
Chairman
APSTE - the Association for Production, Storage and Trading of Electricity
Bulgaria

To Talk

State of the European Solar PPA Market: Trends & Key Developments

Speaker

Itamar Orlandi
Director - Commercial Strategy
Pexapark AG
Switzerland

To Talk

Financial & Credit Risks: De-risking Corporate PPAs for Buyers and Sellers

Speaker

Jan Knievel
Head of Origination
Sunnic lighthouse GmbH
Germany

Recording of presentation not authorized for publication.

Understanding PPA Models: From Traditional to Hybrid and Multi-Buyers

Speaker

Beatriz Guillén Sánchez-Hidalgo
Head of Power Markets Southern Europe
Lightsource bp
United Kingdom

Recording of presentation not authorized for publication.

Panel Discussion: Securing Long-Term Value in Corporate PPAs - Strategies & Best Practices

To Talk

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