Ashurst's German Energy Team held a joint webinar with energy market experts from Aurora Energy Research on Corporate Power Purchase Agreements (PPAs). The panellists presented to more than 220 stakeholders on opportunities for decarbonisation and current and future commercial and legal considerations for successful PPAs for German corporate offtakers. PPAs between renewables developers and larger corporates have become increasingly popular in Germany. Energy intensive companies are looking to explore the benefits of PPAs as one pillar for their decarbonatisation strategy or as part of their Net Zero targets. Rising power prices (due to e.g. commodity and CO2 prices) on the one hand, and ongoing and accelerated decline in renewable technology costs on the other hand, result in renewables becoming more and more competitive for power offtakers in Germany.
Maximilian Uibeleisen and Simon Groneberg presented legal considerations for PPAs in Germany and showed that Germany offers an attractive regulatory framework for the conclusion of PPAs. They gave on overview of the key trade-offs in PPA clauses, the impacts of COVID-19 on the conclusion of PPAs and current legal developments for PPAs in Germany.
