Dena publishes PPA market analysis for Germany

April 17, 2024

Source: Energy & Management Powernews

Dena publishes PPA market analysis Germany

The German PPA market was once small, but this has changed since 2023 at the latest, as can be seen from the "PPA market analysis Germany 2023"

The German Energy Agency's (Dena) Renewable Energy Market Offensive presented its "PPA market analysis Germany 2023" on 16 April. presented its "PPA Market Analysis Germany 2023" on April 16. According to the analysis, the total volume of power purchase agreements or plant-related green electricity direct supply contracts increased by 323 percent in 2023 compared to the previous year.

Most PPAs were still concluded for ground-mounted photovoltaic systems and offshore wind energy plants. As previously stated independently by consultants and analysts from Enervis and Pexapark (we reported), Germany has become the second largest PPA market in Europe after Spain.

Dena CEO Corinna Enders used the new publication to call for: "PPAs must also play a significant role in the future electricity market in order to further stimulate the competitive expansion of renewable energy. A reliable political framework is of central importance here."

Corporate PPAs, under which industrial and commercial customers contract green power plants for their own consumption, are responsible for the majority of market growth. One of the reasons for the market offensive is the Corporate Sustainability Reporting Directive (CSRD), which came into force in January 2023 and increases the number of companies in Germany required to report on environmental, social and governance (ESG) aspects from 500 to 15,000. This increases the pressure on companies to decarbonize. If loans comply with the EU taxonomy, lenders can grant better credit terms.

Another driver for the PPA market is the EU Delegated Act on the production of green hydrogen, which has been in force since January 2023. This sets out the conditions for the production of hydrogen from renewable sources, hydrogen-based fuels or energy carriers other than renewable fuels of non-biological origin (RFNBOs). The required high temporal and geographical correlation means that operators of electrolysers in Germany must conclude PPAs for the production of green hydrogen.

The Renewable Energies Market Initiative is an initiative of Dena, the German Chamber of Industry and Commerce (DIHK) and the Climate Protection Companies Association.

Dena has made the "PPA Market Analysis Germany 2023" freely accessible on one of its pages .

Author:  Georg Eble