Green aggregators playing an increasingly crucial role

Green aggregators, representing RES producers in the market, are offering power purchase agreements (PPAs) for durations now reaching up to ten years, as is customary in more mature markets abroad, and, as a result, are developing into a key part of the sector offering bilateral green-energy contracts.

Until recently – during a transition period that has enabled RES projects to directly participate in the market – nominal durations of PPAs, reaching up to 20 years, were rarely honored, their average duration lasting just two to three months, and, in certain cases, about a year.

Upfront determination of PPA cost is vital information for banks assessing projects, subsequently increasing their chances of securing financial support. Otherwise, if RES producers with PPAs turn to banks for project support but do not incorporate PPA costs into their loan applications, banks will attach PPA price levels based on figures provided by consultants, which tend to be overestimated.

Green aggregators are specialized and innovative companies applying sophisticated market tools for optimal commercial management of green-energy plants, achieved by minimizing balancing costs and making accurate production forecasts.

Given the deepening energy-mix penetration of renewables, as well as the complexity of their market participation, an extremely difficult task for RES producers to handle alone, green aggregators are playing an increasingly crucial role.

Up until December, 2022, a total of 33 green aggregation licenses were granted for a total capacity of 16.1 GW, according to data provided by RAE, the Regulatory Authority for Energy.