Removing Barriers to PPAs

Over the past decade and particularly during the recent energy crisis, PPAs have played a critical role in providing European corporates with stable and predictable electricity prices. By offering long-term visibility on energy costs, they have strengthened corporate resilience and competitiveness while supporting decarbonisation strategies. Growing the share of PPAs is therefore a strategic priority for the European Union, as reflected in the Commission’s Affordable Energy Action Plan (2025).

In parallel with public support schemes such as Contracts for Difference (CfDs), PPAs have also proven highly effective in stabilising revenues for renewable energy developers. Through long-term revenue certainty, these instruments lower the cost of capital, improve access to project financing, and enable the large-scale deployment of solar PV and other renewables. These benefits have been recognised at EU level, notably through the Electricity Market Design Regulation (2024), which requires Member States to promote PPAs by removing unjustified barriers to their development.

Delivering the energy transition and ensuring energy security for European consumers and businesses will require the clear identification of the remaining barriers to sign PPAs. Addressing these barriers through targeted and proportionate policy responses will be essential for Europe to unlock the full potential of PPAs, accelerate decarbonisation, and strengthen long-term energy price competitiveness.

In SolarPower Europe's response to the European Commission consultation on  Removing barriers to power purchase agreements focusses on eight key recommendations: 

1. Ensuring fair treatment of PPAs in EU carbon accounting rules 
2. Removing barriers to Hybrid PPAs to unlock investments in flexibility 
3. Adapting the Guarantees of Origin (GO) framework for the storage revolution
4. De-risking counterparty’s default with PPA guarantee schemes
5. Ensuring a level playing field for the harmonious development of PPAs and CfDs
6. Promoting adapted renewable energy procurement solutions to SMEs
7. Keeping financial accounting and reporting frameworks simple 
8. Facilitating cross-border PPAs with adapted instruments and auctions