Consistent with performance so far in 2022, continued strong PPA up-take is expected in 2023.
A consortium comprising of Saudi Arabia’s Acwa Power and Japan’s Mitsui has been selected as the preferred bidder for the Al-Dur 2 independent water and power project in Bahrain. The aforementioned project is being implemented by contracting with the private sector (i.e. an independent water and power provider). [1]
Al-Dur 2 will have a capacity of 1,500 MW and a desalination component of 50 million imperial gallons a day. EWA reported that it will purchase the power under a 20-year PPA. [2]
[1] ‘The Minister of Electricity Affairs and the CEO inspect the second phase of the Al-Dur Power and Water Plant’ (Electricity and Water Authority, 16 August 2020) accessed 25 August 2020
[2] Meed, ‘Bahrain selects preferred bidder for Al-Dur 2 IWPP’ (Andrew Roscoe, 10 October 2018)
No details as of yet.
None that we are aware of.
ArcelorMittal Brasil and Casa dos Ventos announced a joint venture for the development of a 553 MW wind project. The total expected investment is of BRL4.2 billion and a 20-year PPA is expected to be entered between the JV and ArcelorMittal.
- In the first quarter of 2024, the National Energy Commission will award the tender carried out for the supply of energy for customers subject to regulated prices, for the period 2027-2047, which considers a total of 5,400 GWh.
The Government announced last year its decision to privatize the largest transmission company in Colombia- Interconexión Eléctrica S.A. (known as ISA) which is the grid owner of 80% of the transmission grid. The expected value of the transaction is about USD$ 2,7 billion.
We are not aware of any such transaction.
The Egyptian Electricity Holding Company (EEHC) has issued the first Call for Expression of Interest (EOI) regarding concentrated solar power (CSP). This is significant as CSP has yet to be introduced to Egypt, despite being present in other Middle Eastern countries.
Please access this link to view a list of PPP projects that are in the pipeline.
The Finnish Wind Power Association publishes a list of planned and ongoing projects in Finland and wind parks in operation.
The list can be found on the Finnish Wind Power Association website.
No public information at present. However, the rise in gas and electricity prices continues to have an impact on developers and operators of renewable energy plants, which could lead to an increased development of corporate PPAs in France.
Not applicable.
Large domestic and international players have been steadily showing serious interest in the Greek PPA market. Since banks are providing relatively low-interest rates to grow incentives for clients to enter into corporate PPAs, we expect multiple deals to come into the market during the course of the following months. Also, the Green Pool scheme which will soon be approved and implemented, is expected to open a large-scale PPA market in Greece.
We expect continued appetite from big tech and data centre owners for renewable cPPAs. But we are seeing an increasing interest from other large power consumers including manufacturers in the pharmaceutical and medical devices sectors as illustrated by the Johnston and Johnston cPPA. As such, it’s likely that the next 12 to 18 months will see this next group of corporates begin to consider cPPAs in the Irish market.
In 2022, DLA Piper advised generators and offtakers on significant Irish cPPA deals which have yet to be announced.
Auctions under the New RES Decree are expected to add 8 GW of capacity. However, Italy will need to add approximately 40GW to meet its 2030 targets, of which the auctioned projects represent a mere 15%.
While short-term products have been the main trend for a while, the recent deals including 10 and 15-year durations are indicate that medium and long-term agreements represent viable options too.
The main push behind the recent growth in subsidy-free deals in Italy came from players that took a proactive approach, filling the gap left by the market’s paralysis after the suspension of government auctions, eyeing PPAs to offset upstream risks.
The three-party seven-year sleeved PPA agreement signed by FERA, Duferco and DXT represent a milestone deal, being both Italy’s first wind and first corporate PPA, demonstrating the viability of onshore wind PPAs in the country. Such PPA will see FERA selling electricity from one of its wind farms in northern Italy to DXT. The latter will then “sell the electrons” produced from the project – sleeved with the help of an unspecified utility – to Duferco.
Based on market experience considerations, it can be argued that once a model is proven and has been delivered within the market, buyer demand tends to increase.
Italy is expected to create opportunities especially for small and medium utility-scale projects.
High electricity prices are a significant driver of project developments. However, one of the most relevant effects of the COVID-19 pandemic has been a significant drop in electricity demand and, consequently, in electricity prices. This scenario has caused the suspension of new plant development projects and a drop in renewable energy supply that experts believe will last at least until 2023, with a normalization expected by 2025.
KenGen made a public announcement of its intention to become an energy distributor as soon as the relevant enabling regulations have been published.[1]
[1] Edwin Okoth KenGen now plans to sell power direct to consumers, Published, 25 November 2020
Hard to say, there is no public record or reliable source of information.
A competitive bidding process was launched in December 2019 by the Ministry of Energy and Moroccan Agency for Sustainable Energy (MASEN) for the development of photovoltaic projects pursuant to law No. 13-09 relating to renewable energy and this for a total capacity of 400MW.
The following transactions are expected to come to market in the next 12-18 months:
- An ongoing concession to build, operate and transfer a 400 MW gas-fired generating plant and a 563km transmission line.
- EDM will launch two 40MW solar power plant projects in Lichinga and Manje as part of their Renewable Energy Auction Program (PROLER) activities in 2021.
In the upcoming period, the Dutch market anticipates several significant transactions, predominantly stemming from a slate of offshore projects scheduled for public procurement within the next one to two years. While it is challenging to accurately forecast the parties that will engage in cPPAs as part of these projects, the participants will likely be influenced by real-time market dynamics. However, we anticipate that established players like Vattenfall, Eneco, Klimaatfonds, and Google will demonstrate a strong interest in new cPPAs. In the onshore sector, the scalability of cPPAs remains largely contingent upon the emergence of robust credit enhancement products. This presents opportunities not just for financial institutions but also for insurance companies. As standardisation takes hold in this market, we expect a surge in deal-making activities, further propelled by the Netherlands' ambitious energy transition and carbon reduction goals.
There has been significant international and domestic investment (and development) in renewable energy generation in New Zealand, particularly solar energy. We expect high PPA activity in the next 12 to 18 months.
Specifically, we expect the world's leading technology companies to continue to invest in New Zealand (data centres and other ventures). These investments are typically associated with the large consumption of energy, so we anticipate PPAs will continue to be incorporated into energy strategies of these companies to fulfil their ESG commitments.
Not applicable.
No significant transactions/deals are yet known in the energy market for the next months.
There is no published information on upcoming transactions at the moment, although, for instance, Quair Poland has announced it is negotiating further contracts with leading brands to increase its cPPA portfolio to 5 TWh.
No public information is available in this regard. However, with the large-scale solar capacity included in 2019 and 2020 tenders slowly taking shape, deals are expected to continue to drive the Portuguese market in the next 12-18 months.
West African Energy, a company formed by Senegalese private promoters, has signed a contract with the Turkish company Çalik Enerji and the US group General Electric (GE) for the construction of a 300 MW gas-fired power plant at Cap des Biches in Rufisque, Dakar. The cost of the project is estimated at EUR350 million.
On another note, Lekela has received a grant from the US Trade and Development Agency (USTDA) to fund a feasibility study in partnership with Senelec for the first grid-scale battery electricity storage in Senegal. The study will look at how to enhance grid stability and integrate intermittent renewable energy into Senelec’s power grid. The battery storage will be located at the Lekela project on the 158.7 MW Taiba Ndiaye Wind Farm, which is itself the first utility-scale wind farm in Senegal.
We expect there to be a noticeable increase in CPPA’s in the next 12-18 months based on recent and favourable regulatory changes (see above) and the increased focus on sustainability and environmental, social and governance (SESG) considerations.
The war in Ukraine and recent regulatory changes have led to a significant decrease in the number of PPAs closed in recent months. This tendency may continue in the following months. However, there is still appetite for PPAs in Spain. Good examples are the increase on the number of Direct PPAs and the interest of electro-intensive consumers in this type of contract.
Many large projects have come to market in the last few years and the market is still very active. Due to recent developments on the European energy markets following the onset of the war in Ukraine, energy prices in Sweden have increased drastically especially in the price areas SE3 and SE4. The energy crisis has put focus on the Swedish energy output which, coupled with continuously high sustainability ambitions, has led to initiatives from the Swedish government to build out the Swedish production of wind power (with a particular focus on the under-developed offshore segment) and solar power. We see a lot of interest from developers and other market actors in offshore wind, solar power and battery storage. We expect a high activity on the Swedish energy markets overall and on the cPPA market. However, there are currently some uncertainties in respect of regulatory changes due to the ongoing war in Ukraine.
Moreover, while the world's technology companies continue to install large data centers in Scandinavia and new ventures for (energy consuming) production of eg batteries and green steel are being developed backed by large global corporates, we expect that cPPAs will continue to be incorporated into energy strategies of these companies to fulfil their commitments to use green electricity and hedge their exposure to fluctuating market prices.
- Combined Cycle Power Plant "Skhira 1", with a capacity ranging between 470 and 570 MW: in the framework of a public-private partnership.
- Combined Cycle Power Plant "Skhira 2" with a capacity varying between 470 and 570 MW: In the process of seeking financing, the expected date of commissioning of the plant is 2025-2026.
- Wind power plant "Jbel Tbagua" with a capacity of 80 MW.
- Six photovoltaic plants, with a total capacity of 300 MW.
- SMART GRID PROJECT, aiming to improve the services provided to customers, minimize fraud and increase the rate of integration of renewable energy into the national grid, financed by the French Development Agency, amounting to EUR120 million. The timeframe for its implementation is set during the period 2021-2024.
Not applicable.
We believe a number of Dubai’s free trade and enterprise zones will introduce a centralised means of allowing their tenants to access Dubai’s net metering regulations.
Given the number of projects planned and under construction, according to Wind Europe, offshore wind will grow in GB and the British offshore market will remain the largest of its kind. Offshore installations will concentrate mainly in GB, with 5.5 GW or 33% of all new grid-connected capacity. The "Hornsea 1 Heron Wind + Njord" and "Beatrice 2" will bring an additional 738 MW of offshore capacity. Following the May 2019 round, GB has announced a new CfD round to take place in 2021, mostly for offshore wind. The awarded capacity could be up to 2 GW.
No information at present.
No public information on this.
Angola
To what extent are corporate PPAs presently deployed and what sort of structure do they take?
Corporate PPAs remain uncommon in Angola.
Article 48 of the Electricity General Law provides that outside the scope of the public electric system, the conditions of sale of electric energy will be established by the parties.
Article 15 of the Executive Decree No. 122/19 of May 24 (electric energy sales tariffs) provides special arrangements for the sale of electricity by means of special or bilateral contracts between producers and distributors and those with final customers, under the terms set out in the Tariff Regulations (Presidential Decree No. 4/11 of January 6) shall be authorized by an order of the Minister of Energy and Waters, after hearing the regulatory authority.
All the contracts with National Transportation Network ("RNT" as a sole buyer must comply with certain requirements specified in Article 11 of the Presidential Decree No. 4/11 of January 6 as amended by Article 11 of the Presidential Decree 178/20 of June 25, in order to their prices are allocated to tariffs.
Do the country's regulators allow corporate owners to purchase (1) directly from a facility, or (2) from a choice of suppliers?
In accordance with Article 11 of the General Electricity Law, the use of the facilities and networks that incorporate the Public Electricity System is allowed under the conditions provided for in the aforementioned regulation or agreed between the interested parties and their holders, as long as the supervisory body approves it after prior validation by the regulatory authority.
Hence, corporate owners are allowed to purchase directly from a facility or a choice of suppliers, as long as it has been approved by the supervisory body and has effectively gone through a prior validation from the regulatory authority.
Other than the generator and the off-taker, are any third parties commonly party to the PPA structure (e.g. a utility or other market agent)?
In addition to the electrical energy provided by the Company ENDE E.P (National Electricity Distribution Company) that comes from hydraulic dams and private generators, so far, there are no other third parties as a common party to the cPPA structure.
Is a generator permitted to sell electricity directly to an end user? If so, do they require a licence or other form of authorization?
As previously stated, Article 48 of the Electricity General Law provides that outside the scope of the public electric system, the conditions of sale of electric energy will be established by the parties.
Angola
What are some of the technical, political, financial or regulatory challenges to corporations adopting green energy in the short/medium term in your country and how have these challenges been overcome (or how can they be overcome)?
More incentives and benefits need to be created for companies that want to implement green energy systems. Facilitating the process of importing and accessing currencies to pay for equipment to implement the projects related to renewable energy is necessary. Governments should create incentives for companies that are implemented across the country, thereby creating employment and facilitating greater acceptance of new technologies in rural areas.
Angola
Are there any anticipated regulatory changes which will alter the regulatory landscape for corporate green energy and corporate PPAs?
International development partners are providing technical support to the Angolan government to establish a regulatory framework which includes negotiating power purchase agreements with independent power producers (IPPs) and design of a feed-in-tariff scheme for renewables.
Angola
What is the corporate appetite for green energy, including any political or financial incentives available to corporates to adopt green energy?
Even though national and international companies have been showing interest to develop green energy structures in Angola, this is still something that has to be well studied and thought through it. However, there are already small dimensions of solar energy structures being developed, for example, but only for particular purposes.
What are the key local advantages of the corporate PPA model which can benefit our clients?
The key local advantage of the corporate PPA model in Angola is energy security and easier access to financing having the corporate PPA as collateral.
What subsidies are applicable to the generation and sale of renewable energy?
This information has not been made public.
Does your country implement a national support scheme with tradable green certificates (such as guarantees of origins)?
Not yet, as green energy has not yet been implemented.
Angola
To the extent corporate PPAs are deployed, how are prices, terms and risks affected?
| Topic | Details |
| Do prices tend to be floating or fixed? |
According to Article 26 of the Presidential Decree 178/20 of June 25, the tariff structure is applied by the RNT concessionaire and by the distribution companies to users connected to their networks. Along these lines, this same diploma, on its article 27, establishes that the tariff structure reflects the costs to which users give rise, according to the characteristics of consumption and the level of tension to which they are connected, regardless of their social or legal character and the final destination give to the energy consumed. Hence, the prices are fixed considering the elements above mentioned. |
| What term is typically agreed for the PPAs? | There is not a fixed-term for cPPAs it all depends on the activity to be exercised. However, it is important to mention that the tariff regime is, in general terms, in force in a four-year tariff regime. Alongside with that, the tariff period is defined by a specific diploma by the Sector Regulatory Entity, which must be multiannual, as established on Article 28-A of the Presidential Decree 178/20 of June 25. |
| Are the PPAs take-or-pay or limited volume? | Not applicable |
| Are there any other typical risks? | Not applicable |
To the extent corporate PPAs are deployed, in whose favour will the risks typically be balanced?
| Type of risk | Details |
| Volume risk | The risk is born by those who not comply with rule applicable to the specific situation. |
| Change in law | Usually, when changing legislation, users and distributors are given a period to prepare and adapt to this mentioned change of legislation. Hence, when there is a change in law non complied with, the risk is born by those who have not complied with the rule in place. |
| Increase / reduction of benefits | Again, similar to the change in law, the risk is born by those who not comply with rule applicable to the specific situation. |
| Market liberalisation (if applicable) | Not applicable |
| Credit risk | The risk is born by those who not comply with rule applicable to the specific situation. |
| Imbalance power risk | The risk is born by those who not comply with rule applicable to the specific situation. |
| Production profile risk | The risk is born by those who not comply with rule applicable to the specific situation. |
Angola
Does your country operate a balancing responsibility scheme?
Not applicable.
If your country operates a balancing responsibility scheme, who is the balancing authority and do the generator and offtaker typically undertake balancing themselves?
Not applicable.
Angola
What significant transactions/deals have taken place in the last 12-18 months?
Laúca Hydroelectric Power Plant
According to the Government, Laúca Hydroelectric Power Plant (“AH Laúca”) is the largest work in the country today. The Project was commissioned by the Angolan Executive, represented by the Ministry of Energy and Water, and is carried out by ODEBRECHT. COBA and LA MAYER carry out the supervision of the implementation of the project. When AH Laúca is 100% operational, it will produce more than twice as much energy as the other two dams already operating on the Kwanza River. This energy potential will serve 8 million people. AH Laúca will produce 8,643 GWh (gigawatts) of electricity, representing an installed capacity of 2,070 MW (megawatts).
The realization of the project demands great infrastructure support. Because of this, AH Laúca is today a city that is composed by: Leisure area; Sports area; Accommodations; Kitchen and Cafeterias and Medical Center.
AH Laúca is a pole of job and income generation. The project is also committed to providing opportunities for national talent. Today, the enterprise has 8,458 Members. Of these, 8,035 are national, which represents 95% of the entire productive force involved in the execution of the work. The remaining 423 are expatriates, a number that represents 5% of total members.
Through the Acreditar Program, the project offers basic and specific training to AH Laúca Members and also to the residents of the communities surrounding the construction site.
AH Laúca is 86% ahead of Civil Works, 72% ahead of Electromechanical Assembly and 14% in the Energy Transport System. Always overcoming challenges and fulfilling all the goals set with safety, quality and productivity.
2nd Hydroelectric Power Plant of Cambambe and Dam Alignment
With the conclusion of the Cambambe 2nd Power Station and the Dam Raising, it was possible to obtain an additional power of 780MW. This power is helping to reduce the energy supply deficit in the Provinces of Luanda, Kwanza Sul, Malanje, Uige, Kwanza Norte and Bengo.
It will also allow the interconnection of the North-Central Systems with the Benguela Province link, thus reducing production costs and the consumption of diesel for energy production.
More than 10,000 construction posts have been created as part of the temporary work in the rehabilitation, modernization and extension of the hydroelectric complex. The construction owner was GAMEK (Gabinete de Aproveitamento do Médio Kwanza) and the contractor was ODEBRECTH.
Solar village program
The main objective of the Solar Village Programme is electrification, through the installation of autonomous solar photovoltaic systems (isolated) in infrastructures Social, including: Schools; Medical Posts; Police Posts; Administrative Buildings; and, Social Jangos, including Public Lighting Posts.
In the 1st phase of the Programme, awarded to the company Elektra Electricidade e Águas, Lda, 11 localities were selected from 4 Provinces in the country: Bié, Kuando Kubango, Malange and Moxico. This phase has been completed since 2011, with a total of 156,660 Wp of 42 systems and 70 public lighting posts implemented.
In some cases, a system provides electricity to more than one infrastructure. So far, 50 infrastructures have benefited from the electricity supply, namely: 15 schools, 18 medical posts, 1 maternity ward, 1 police station, 1 police station, 9 administrative residences, 1 nurse's residence, 3 administrations.
In the 2nd phase of the Solar Village Programme, four companies were selected for the installation of a total of 75 systems and 160 streetlights.
As part of the 3rd phase of the Solar Village Programme, the project has already started after the Auto de Consignation signed with the Company LTP Energias S.A. The project will benefit the provinces of Kwanza Sul, Cuando Cubango and Lunda Sul, whose aim is to supply electricity to the communities with Solar Photovoltaic Systems of Auto-consumption Kits and Public Photovoltaic Lighting.
It is part of the energy and water sector action plan 2018-2002, to continue the Solar Village Programme and to ensure adequate maintenance of its infrastructure and test a new concept of a 100% solar mini network, based on batteries, to electrify the most isolated municipality headquarters, avoiding fuel logistics.
What transactions/deals are anticipated to come to market in the next 12-18 months?
See Past transactions.
Angola
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