Power purchase agreements (PPAs) have fallen to levels of between 40 and 50 euros per MWh because of two key factors, firstly, the need of many RES project investors to establish bilateral contracts in order to upgrade their projects and meet priority-status standards set by power grid operator IPTO, and secondly, as a result of low absorption rates of production as large-scale consumers who could absorb big RES quantities have already made intra-group arrangements, a leading official at Aurora Energy Research has told energypress.

In addition, potential off-takers are limited and have low creditworthiness, the official noted.

“The supply and demand imbalance is putting downward pressure on PPA prices, resulting in PPAs trading at levels significantly below their value,” the official pointed out.

PPA contracts running from 2025 and 2035 in the Greek market should actually be worth between 60 and 90 euros per MWh for solar energy and between 70 and 100 euros per MWh for wind energy, the official noted.