| Work Detail |
Energy consultancy Enervis has introduced a new initiative, the 24/7 PPA Platform, aimed at accelerating the adoption of 24/7 Power Purchase Agreements (PPAs). The project is designed to ensure that every hour of electricity consumption is matched by carbon-free energy generation, addressing key challenges in renewable energy integration. Innovative 24/7 PPA Models Evaluated As part of the initiative, Enervis has modeled five alternative 24/7 PPA structures against a Baseload PPA benchmark, analyzing their net costs, surplus electricity volumes, and CO2 emissions over a 10-year period (2025-2035) in Germany. The five models include: Pooled PPA Battery PPA Hydrogen PPA Biomass PPA Run-of-River PPA The study finds that while Baseload PPAs and Pooled PPAs depend solely on solar PV, onshore wind, and offshore wind, other models integrate flexibility solutions to better align generation with real-time consumption. Key Findings from the Analysis Baseload PPA: Achieves 73% time-of-use adaptation and 60% CO2 reduction compared to grid electricity, with an 8% cost premium. Grouped PPA: Offers the highest time adaptation rate (90%), though increased adaptation levels result in higher excess electricity volumes. Flexibility Options: Essential for achieving 100% adaptation while minimizing surpluses. While biomass and run-of-river solutions remain cost-effective, hydrogen and battery storage remain expensive. Despite the progress, Enervis notes that no single PPA model is ideal for all consumers. Baseload and continuous supply PPAs offer low costs and minimal surplus electricity, but they lack time granularity. Biomass PPAs, while flexible, raise sustainability concerns. Meanwhile, battery PPAs face regulatory hurdles due to unclear Guarantees of Origin (GoO), and green hydrogen PPAs remain commercially unviable due to high costs and limited scalable production. Standardized Contractual Frameworks Introduced To enhance market adoption, the platform has developed standardized contractual frameworks for two key 24/7 PPA models: Pooled PPA – Exclusively reliant on renewable energy sources (RES). It includes: An upstream production agreement between renewable operators and an arranger. An upstream baseload agreement between the arranger and the offtaker. Flexible PPA – Integrates flexibility solutions. Under this model: The operator delivers energy “on schedule” and manages deviations between generation and demand. The offtaker pays a capacity price (€/MW) for the flexibility provided. Policy Recommendations for 24/7 PPA Growth To facilitate the widespread adoption of 24/7 PPAs, Enervis has outlined several key policy recommendations: Government incentives to drive investment in advanced flexibility technologies. Regulatory changes to allow Guarantees of Origin (GoOs) for battery storage and introduce granular, time-stamped GoOs across Europe. Public guarantees for pool operators in green energy contracts to improve bankability. Intermediaries for green hydrogen PPAs to mitigate surplus risks. A 24/7 PPA option within Germany’s CO2 offset framework. Future Outlook: Data Centers and Green Hydrogen to Lead Adoption While achieving 100% hourly carbon-free energy matching remains a long-term challenge, data center operators and green hydrogen producers are expected to lead the transition to 24/7 PPAs. Driven by decarbonization goals and regulatory mandates, these sectors could account for up to 650 TWh of electricity demand in the EU by 2030—20% of total electricity consumption. With the launch of the 24/7 PPA Platform, Enervis aims to provide practical solutions that support corporate clean energy goals while ensuring cost-effective and reliable power supply. |
