Greece’s Power Purchase Agreements (PPAs) have been reduced to €40 to €50 per MWh due to two key factors. Firstly, the need for investors in renewable energy projects to enter into bilateral contracts in order to advance their projects and meet the set conditions for acquiring the status of priority producer by the power grid operator IPTO.
Another reason is the result of low generation placement rates, as large consumers who could take on large amounts of renewable energy have already made arrangements within their groups, said a top official at Aurora Energy Research.
In addition, potential buyers are limited and have poor credit, the official noted.
The supply-demand imbalance is estimated to have put downward pressure on PPA prices, resulting in these contracts trading at levels well below their value.
PPA contracts on the Greek market from 2025 to 2035 should actually cost between €60 and €90 per MWh for solar and between €70 and €100 per MWh for wind, it added.