WALLESS: Power Purchase Agreement (PPA)
Lithuanian parliament granted several amendments regarding renewable energy. Among the others we would like to mention the following improvements:
- introduced a concept of renewable energy communities;
- mechanism of compensation for renewable energy production cutting;
- producers of renewable energy are allowed to enter into PPAs (Power Purchase Agreements) with consumers without additional licensing.
The amendment of the law concerning PPA is not ideal however, it is a huge step forward. PPA is an excellent tool for the consumers as it guarantees a stable electricity price that allows proper planning of the costs. Moreover, a PPA with a renewable energy project ensures the consumer the certified origin of the electricity consumed. For the renewable energy developers with volatile electricity market, PPAs are some sort of security of a stable price at the long term needed by to secure bank financing for their projects.
Below you can find the presentations in English and Lithuanian languages of the potential models of PPA.