What Will Come After the Germany Renewable Energy Sources Act?
In many places, operators and investors in Germany are asking, ‘What will come after the EEG (Renewable Energy Sources Act)?’ This means the time after the 20-year period with fixed feed-in tariffs. In contrast, in many countries around the globe there are no fixed feed-in rates governed by law at all – investors need to find offtakers for their eco-power from the first kilowatt-hour onward. This is where power purchase agreements (PPAs) come into place. On the other hand, such PPA structures are often also supported by tax or financing benefits or green quotas. Thus, what kind of prospects do PPAs offer for the German energy market?
Björn Broda, Head of Corporate Strategy, Communications & Public Affairs Department, juwi, Germany