German Energy Agency calls for exemption for »green PPAs« in planned price cap

The »Marktoffensive Erneuerbare Energien« (Market Initiative Renewable Energies), initiated by the German Energy Agency (Dena), demands an exception for Green PPAs in the electricity price cap announced by the German Federal Cabinet, with which »excess profits« achieved in electricity trading are to be skimmed off by price caps. Without such an exemption, there would be a strong encroachment on contractual freedom, according to a statement from the market initiative. For example, a flat negative levy for all renewable energy producers, based on market value, would lead to an active loss on the part of the producers. This would not be economically viable for them, it continues.
From the perspective of the Market Initiative, the planned regulations must be designed in such a way that exemptions are created for both physical and financial green PPAs, fixed-price hedges, and other forward transactions for risk hedging. Plant operators would be exempt from repayment if they can demonstrate that there is no significant additional revenue due to the long-term fixed contract price. Resales outside of such contracts would be exempt.
Members of the Market Initiative Renewable Energies can exchange information with other members in a protected environment about the advantages and disadvantages of PPAs as well as obstacles and demands. The initiative offers the opportunity to establish direct contacts with green power producers or buyers and thus find future business partners.

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