Power Purchase Agreements: An Emerging Tool at the Centre of the European Energy transition A Focus on France

Power Purchase Agreements (PPAs) enjoy great success in Europe. This is especially true of Green Corporate PPAs (GC PPAs), also known as Corporate Renewable PPAs, which are agreements under which a corporate customer agrees to purchase renewable electricity directly from the electricity producer, pursuant to the definition set forth in the 2018 Renewable Energy Directive (‘RED II’) (Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 Dec. 2018 on the promotion of the use of energy from renewable sources (recast).). Nearly 14GW in PPAs were entered into in 2018 worldwide, of which 1.9GW in Europe (2017: 1GW) and approx. 8GW in the United States (2017: 2.4GW) (Europe Corporate Renewable, PPA Market Report 2018 – 2027.). Wind energy accounts for 85% of GC PPAs entered into in Europe to date, with solar energy accounting for the remaining 15%. This progress can be explained partly by an increase in energy demand worldwide, the companies’ willingness to reduce their carbon footprint and control energy costs, the need for clear and foreseeable price signals for investors and producers, but also the development of public support schemes for renewable energies (‘RE’). Power Purchase Agreement, Renewable Energy, Electricity, French Law, Energy transition, Corporate Social Responsibility