-- The European Commission on Tuesday issued a recommendation aimed at removing the barriers to power purchase agreements (PPAs) and other energy purchase agreements across the bloc.
Aimed at allowing large energy consumers to source their supplies directly from generators, while also providing consumers with pricing certainty, the Commission noted that the potential of PPAs has largely remained untapped so far, primarily due to regulatory and non-regulatory barriers.
The new recommendation covers a broad range of issues, including access for small buyers, guarantees, risk reduction measures, and even accounting rules.
Besides power purchases, it also covers purchase agreements for other energy sources, such as heat, biogas and hydrogen, with the intention of tearing down barriers across the region's energy mix.
According to the Commission, this recommendation builds on an earlier guidance issued in 2022, and comes after a recent call for evidence, which involved assessing all of the barriers that hamper the development of PPAs in the region.