L R AS Published on Saturday 4 February 2023 - n° 433 - Categories:purchase/sale contracts
PPAs should be developed
According to SolarPower Europe (SPE), power purchase agreements (PPAs) should become a standard tool for the development and supply of renewable energy. "The EU should encourage investment
in more renewable capacity where PPAs offer long-term stability and low costs for renewables and avoid volatility in electricity prices.
SPE considers it necessary "to make PPAs more accessible to all consumers, including small and medium-sized enterprises whose energy consumption may not be large enough to sign a PPA directly. SPE advocates enabling business and citizen consumers to benefit more directly from low-cost renewable electricity by facilitating access to renewable power purchase agreements."
"Changing the fundamentals of the electricity markets, such as marginal pricing, would create regulatory instability and actually slow down investment in new renewable technologies. The author says he has already seen the negative consequences of capping market revenues in the power purchase agreement market."
In order to increase and accelerate the installation of solar PV, the grid needs to solve its capacity problems that are slowing down the deployment of capacity in several European countries - Austria, Denmark and the Netherlands among others - and with permit delays.
A 50-70% increase in investment in transmission and distribution network upgrades, to €34-39 billion ($36.8-42.3 billion) per year by 2030, would be needed to support the rapid pace of renewable capacity addition.
PV Tech of 31 January 2023
Editor's note: SPE is an organisation that defends and promotes renewable energy. This is good and necessary.
Only the intermittency is largely forgotten by this organization, because developing RE does not create energy at night or when the wind does not blow. Solar energy production is low in winter when it is most needed. We need to find a solution that bridges the gap between two phases of solar or wind production. Developing the grid is good, but it does not solve the fundamental problem of intermittency. Trying to bring everything back to renewable energies under the current conditions is inadequate.
