According to EY, energy security has risen to the top of Government priority lists in the wake of geopolitical instability and spiraling gas prices and Romania qualified in top 30 Corporate Power Purchase Agreement (PPA) index.
Director of EY Romania Mihai Draghici said that Romania qualified in top 30 Corporate Power Purchase Agreement (PPA) index following a comprehensive evaluation on 12 key parameters, which act as a proxy for corporate PPA potential. The report is a recognition of the local market potential for such instruments that can contribute to energy cost reduction and long-term price stability for energy intensive companies while offering the long-term contracts required by developers to finance new investments in renewables.
RECAI 59 explores how emerging renewables technologies and green fuels have the potential to substantially reduce the share of gas in power generation, thus creating a favorable investment climate for these sources of supply. In Europe, for example, increasing liquefied natural gas (LNG) import capacity has gained impetus, as has boosting green gas production and the development of other alternative fuels. The report notes that while sourcing gas from elsewhere to reduce reliance on Russian gas cannot happen overnight, significant momentum is now evident.
Since the PPA Index was introduced as part of RECAI, six months ago, the market for PPAs has continued to expand. Exceptionally high and very volatile power market prices are pushing buyers to fix their price of electricity for as long as possible, while corporates are scrambling to make good on commitments made at COP26 to decarbonize their operations and supply chain. Demand for PPAs has increased significantly and shows no sign of slowing.
