Ministry working on decision facilitating PPAs for industry

The energy ministry and European Commission are nearing an agreement that would exempt electricity producers from a wholesale electricity market cap as long as they have established power purchase agreements (PPAs) with energy-intensive consumers for physical delivery of power quantities.

The ministry is moving in this direction as it is seeking a subsidy-free solution for energy-intensive industrial consumers, facing urgent energy-cost issues as a result of expired or expiring power supply agreements, in 2023, with power utility PPC. The power utility has ruled out any chance of renewing supply agreements with industrial consumers under favorable terms, as had been the case until now.

For most industries, PPC supply contracts expired at the end of 2022, while the remainder face expiring contracts in 2023.

Energy minister Kostas Skrekas is preparing a ministerial decision that will pave the way for the establishment of PPAs between electricity producers and high-voltage industries, sources informed.

Both electricity producers and consumers will need to present detailed schedules of physical power deliveries to be eligible for PPAs.

The minister pledged, last month, to deliver a related ministerial decision while participating at a meeting held by SEV, the Hellenic Association of Industrialists.

PPAs will reportedly initially be applicable between industries and lignite and gas-fired power plants, followed by industries and RES producers.

Industrial sector sources told energypress they have yet to receive news of any specific decision by the energy ministry, recalling that most industrial plants are being billed at wholesale electricity market prices as of January 1, noting PPC does not intend to renew their supply contracts under previous terms.