Did you know that the Italian market for Power Purchase Agreements (PPAs) has some of the greatest potential in Europe?

Due to improved economics and underwhelming results of subsidy schemes, the number of renewables merchant projects in Italy is growing rapidly. Within this context, PPAs are primed to become an essential instrument to ensure the bankability of renewable energy projects. Further, they reduce the merchant risk exposure of an asset, by granting a more predictable revenue stream to developers.

As the pressure on companies to decarbonise their power supply grows, their interest to procure green energy through PPAs is also increasing, creating the conditions for the Italian PPA market to grow significantly over the next decade.

However, since the Italian PPA market is still at an early stage of development, it can be difficult for both asset developers and off-takers to understand whether contract terms such as pricing structures reflect a fair allocation of risk – a crucial assessment when developing sounding long-term strategies.

Watch the recording of our recent webinar on the future of Italy’s PPA market, held in conjunction with LevelTen Energy, a leading international renewable energy marketplace and PPA procurement platform. Aurora brought its industry-leading approaches to quantifying PPA opportunities and value to the Italian market, which have already benefitted several PPA signings across Europe.

Key highlights discussed:

  • Expected development of merchant renewables in Italy and the role of PPAs in addressing merchant risk
  • Potential for corporate PPA demand in Italy over the next decade
  • Risk allocation in PPA contracts pricing

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