RES producers and industrial energy consumers are negotiating intensely for renewable-energy power purchase agreements (PPAs) promising benefits to both sides as a limited 35-day period offered through a recent legislative revision prepared by the energy ministry enters its final ten days.

RES producers are keen to secure PPAs with industrial consumers as such agreements would secure connection-term priority for their RES projects. On the other hand, industries are pushing for lower energy prices through these PPAs as they try to capitalize on currently favorable market conditions.

The 35-day period for PPAs offered through the legislative revision, ratified on March 14, expires on April 19.

Finalized PPAs need to be submitted to power grid operator IPTO and the energy ministry’s division for renewable energy sources and alternative fuels by April 19, along with affidavits signed by RES unit owners and representatives of energy-intensive industries establishing PPAs.

RES producers and industries are negotiating PPAs at levels falling below 50 euros per MWh, unimaginable levels just months ago.

This sharp drop in PPA prices is, on the one hand, the result of de-escalated energy prices, now giving breathing space to industrial consumers and, on the other hand, large supply of RES projects, greatly exceeding demand.