“Contractual arrangements are tailored to individual needs and requirements and consequently depend on distinct specifications.”

PPAs in action

There are numerous opportunities for using PPAs in the quest towards net zero. The expansion of offshore wind energy, for example, offers great potential as there are high volumes entering the market. Under Sec. 17 para. 1 WindSeeG, bidders for new offshore wind projects must provide that a certain share of the electricity generated is marketed through PPAs.

Where electricity from a new offshore wind farm is to be used to generate green hydrogen a wide range of legal aspects must be considered and reflected in the PPA. This includes obligations relating to the introduction of bidding zones that split Germany into two or more power price regions; with the hydrogen’s green status endangered depending on the location of the wind farm and the electrolyser.

Given the complexities involved, expert legal advice is strongly recommended to evaluate a project’s individual risks and requirements and correctly address them in the contractual design of a PPA. WFW have unrivalled expertise advising on PPA contracts. If you would like us to help you through such a process, please do reach out to this article’s author or, if you are already a client, to your regular WFW contact.

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