Power Purchase Agreements: A Comparative Study Towards the EU Green Deal

Year: 2023

Editor: Renata Gravina, Fondazione Luigi Einaudi

The recent REPowerEU Plan of the European Commission considers Power Purchase Agreements (PPAs) a key driver to achieve the new 2030 target of 45% share of renewable energy. According to the European Commission, such target is essential to ensure the timely and effective achievement of carbon neutrality in 2050. However, the diffusion of PPAs is facing several challenges across EU Member States due to both market and legislative barriers which are intrinsic to the long term nature of PPAs.

The volume investigates the legislative and market framework for PPAs in different EU Member States (Germany, Hungary, Italy, Portugal, Spain) to identify best practices for the diffusion of PPAs and to contribute to the EU debate on climate policies. The most relevant aspect of the book is its comparative and methodological value. The research, indeed, focuses on the potential market failures which, all other else being equal, may potentially affect the diffusion of PPAs in the countries subject to investigation. Identifying, in particular the regulatory and legislative solutions in place in each country to address market failures, such as: transaction costs, information asymmetry, externalities or monopoly power. The project is designed to be a useful tool for policy and decisionmakers on national and European level.