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Home/German Renewables Summit – Worldwide boom for PPAs, Germany lags behind

German Renewables Summit – Worldwide boom for PPAs, Germany lags behind

New research by Aurora Energy Research states that Germany has the potential to cover at least 13% of industrial power through PPAs, which corresponds to a market volume of 2 billion Euro. PPAs offer long-term price security and boost an offtakers green image. Furthermore, PPAs promote the energy transformation and enable the economical operation of subsidy-free renewable energy installations. Despite the benefits and enormous potential of PPAs, the market for German renewables PPAs is quite small in comparison to the Scandinavia, the USA, Spain, and the UK. In particular small and medium-sized enterprises are hindered by financing costs, disincentivising the profitability of PPAs.

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