PPAs: European and national market trends overview

Prepared by Energy Team

The Power Purchase Agreements (“PPAs”) are the purchase and sale instrument for energy from renewable sources that has been receiving interest among energy players since last years.

The requirement felt by the European Commission, member states and Italy to implement a specific regulatory framework is one of the most relevant indicators of the importance of this instrument.

Until this activity is carried out – please note that PwC TLS is currently involved in such a activity together with the competent authorities – it shall be useful to understand both how the European and national PPA market has performed in the last year what we should expect from 2021.

According to the analyses carried out by market analysts, the implementation of PPAs in 2020 was closely related to the events of the past year.

Between the end of the first quarter and the beginning of the second quarter, the pandemic caused a slowdown of the development of PPAs, which, however, resumed in the second half of the year and continued until the end of 2020.

According to the “2021 Market Outlook PPA European Market” issued by Pexapark the number of PPA is approximately equal to 10 GW. This is more than double the threshold reached in 2019 and even four times higher than the results for the period of 2016 and 2017.

These are important numbers that provide reason to hope for the future also to achieving the decarbonization targets set by the European Union.

In this context, Spain and photovoltaic plants have been the most active country and technology, but please note that sector analysts are focusing on offshore wind power, which seems attractive to the more structured sector operators and, as such, potentially more able to manage the amount of risk associated with PPAs as well as a plurality of clients. highly developed risk management, able to manage more than one client.

In consequence of the growth of extraordinary transactions as mergers and acquisitions, the ambitious 2030 European target and consequent sustainable development and the ambitious Italian National Recovery and Resilience Plan, this kind of contract will play an increasingly important and central role.

Let’s Talk

For a deeper discussion, please contact:

Tommaso Tomaiuolo

PwC TLS Avvocati e Commercialisti


Federica De Luca

PwC TLS Avvocati e Commercialisti

Senior Manager

Daniele Archilletti

PwC TLS Avvocati e Commercialisti