Europex welcomes the European Commission’s call for evidence to assess barriers to Power Purchase Agreements (PPAs). PPAs serve a specific purpose: they enable generators and consumers to connect directly, offering solutions that are tailor-made to their needs and restrictions. There are trade-offs to this design. Issues such as counterparty risk, limited standardisation and transparency as well as the absence of
dedicated trading platforms are therefore inherent to the structure of PPAs. Hence, many of the obstacles affecting PPAs stem directly from their nature as uncleared, over-the-counter, bespoke bilateral contracts.
