Evaluating the alignment of the aid measure with the Commission's standards.
In a significant move towards a greener future, Germany has been at the forefront of a market offensive for renewable energies since 2020. This initiative aims to support business models for the direct purchase of green energy between producers and potential consumers.
The offensive, which has been gaining momentum, does not seem to be affected by the current economic situation, decreased electricity demand, increased negative electricity prices, or uncertain future market conditions. However, the Power Purchase Agreement (PPA) market in Germany is under pressure due to these factors, as well as uncertainties about future regulatory frameworks that are hindering investment.
The PPA market analysis in Germany for 2024 was conducted in collaboration with the website Pexapark and the company enercity, who have partnered for a wind power PPA starting in 2026. This analysis revealed that in 2024, the average PPA prices fell by approximately 20% compared to the previous year. Despite a slight increase in the number of PPA deals, the volume of new contracts concluded in Germany decreased.
Negative electricity prices, increasingly influencing price determination in PPA contracts, are a central issue in negotiations. On the other hand, the battery storage market in Germany is experiencing significant growth, but the offensive for renewable energies is not directly linked to the battery storage market unlike the PPA market.
The offensive for renewable energies is not only about energy production, but also about transforming the economy. It has a focus on promoting specific business models for renewable energies, and stable and reliable political guidelines and a coherent strategic approach are needed to sustainably strengthen the PPA market.
Despite the challenges faced by the PPA market, the market offensive for renewable energies in Germany remains a beacon of hope for a sustainable and green future. As the second-largest PPA market in Europe, following Spain, Germany continues to lead the way in the transition to renewable energies.
