LEGAL EVALUATION OF RENEWABLE POWER PURCHASE AGREEMENTS – I

June 2020

LEGAL EVALUATION OF RENEWABLE POWER PURCHASE AGREEMENTS – I

  1. Introduction

Energy transition caused by global climate changes and technological developments has led major energy consumers to explore new business models to take part in energy transition and use them for their own needs.  Corporate consumers, who have important roles in accelerating energy transition, have voluntarily turned to renewable energy procurement in order to achieve the carbon emission reduction goals expected from them[1].  In response to these needs, energy sector players have promoted (even financed) renewable energy projects with different methods by developing business models that gained acceptance in many countries around the world.

In the first paper of our series, which will consist of several papers, we will evaluate the applicability of Renewable PPA (“RPPA”) structure under Turkish law by giving brief information about corporate renewable energy procurement methods.

In our next papers, we will discuss the problems arising in RPPA applications and risk management and standardization efforts regarding RPPAs, and the self-consumption with third-party financing model, which has been much discussed in the Turkish energy sector recently.

  1. Corporate Renewable Energy Procurement Methods

In international energy markets, most preferred business models in order to procure renewable energy by corporate consumers are (i) self-generation or self-consumption, (ii) transfer of unbundled guarantee of origin (GO)[2], (iii) green energy offers[3], and (iv) renewable power purchase agreements (PPA)[4].

Since the term used recently as Renewable Power Purchase Agreement (“RPPA”) in the Turkish energy market is used for all above-mentioned business models, we will first define these business models briefly and then evaluate the applicability of RPPAs, within the scope of the Turkish energy market and other relevant Turkish legislation.

  1. Self-Consumption with Third-Party Financing Model

In this model, which is used in some energy markets, a third-party contractor finances the power generation facility to be used for self-consumption and it undertakes its installation, commissioning, operation, maintenance and repair, and assumes the majority of the financial and commercial risks associated with the project[5].  Then the contractor can lease the plant to the consumer and the consumer makes the agreed payment to the contractor with the proceeds gained from the electricity generated by the plant.  One of the price items to be paid to the contractor by the consumer in the markets, where the trade of electricity is allowed with the self-consumption model, is the sale price of the electricity generated by the plant.

Although, in this model, there is third-party financing and, in some cases, an RPPA, it is accepted as the self-consumption model but not an RPPA in international markets[6].

Corporates, rather than having direct ownership of the power generation plants installed on their roofs, prefer to lease these facilities and purchase the electricity generated from them in order to reduce their risk[7].

In the self-consumption model in Turkey, the financing of facilities by third-party investors is being evaluated by investors and consumers.  However, since electricity generated in accordance with the Regulation on Unlicensed Electricity Generation cannot be traded in any way (Article 24), in Turkey, this structure must be designed without the sale of the electricity.  The evaluation of this structure according to Turkish law will be discussed in another paper.

  1. Unbundled (Bare)[8] Guarantee of Origin Model

Another method used by corporations when performing energy transition is the purchase of the renewable energy source certificate separately from electricity – without purchasing electricity – from a renewable energy generator or from the intermediary companies that trade these origin documents.

Corporates reach their renewable energy consumption targets by purchasing these products in an amount corresponding to their electricity consumption.

These certificates, which are used to track the source of the energy generated, contain information related to the features of the power plant, such as the location of the power plant, the source from which the power is generated (technology), the age of the power plant or whether it receives incentives or not[9].

  1. Green Energy Offers

Green energy offers offered by supply companies to their subscribers in many countries is another method that companies use in renewable energy transition.  In this method, the supply company[10] offers special renewable energy supply agreements to its customers who wish to purchase renewable energy under green supply program[11].  Such supply agreements enable companies to purchase long-term renewable energy directly from supply companies.

The supply company may supply renewable energy and/or source document from its own generation companies, as well as it may obtain such source certificates from third parties.  The supply company uses the source certificate on behalf of the customer who purchased renewable energy.  The customer pays an additional price on the electricity bill in exchange for the renewable electricity energy he has purchased.

  1. Renewable Power Purchase Agreements

Another method corporates use in their renewable energy supply is the Renewable Power Purchase Agreements (“RPPA”).  PPA structures are discussed in many countries and the existing structure is being developed with acquired experience.

The Turkish energy sector stakeholders are also closely following this business model, which is an alternative for financing renewable energy projects and creating new capacity, and are working to make its use more common in the sector.

By 2025, 11,885 MW capacity will leave the Renewable Energy Resources Support Mechanism (“RESSUM”) and generate without incentives in Turkey [12].

11,885 MW of the 21,033 MW capacity that benefits from the RESSUM in 2020, that is to say, more than its half will leave RESSUM and generate without incentives in the next 5 years.  In addition, in the 2019-2023 Strategic Plan of the Ministry of Energy and Natural Resources, the creation of a capacity close to 22,000 MW based on solar and wind energy, where RPPAs can be used as a business model, is targeted[13].  Also, the RPPA model can be used by the parties in order to realize the capacities, which are at the pre-license stage but cannot benefit from the RESSUM for various reasons, at a predictable price.

  • What is RPPA?

Basically, RPPA is a power sales agreement between an energy consumer and a generator.  The parties regulate the purchase of energy needed by the consumer from an existing or green-field power plant for renewable energy purposes in the relevant sales agreement.  The RPPAs – taking into account the needs of the generation plant – are usually concluded for a period of 5 to 15 years.

RPPA, which is one of the most preferred methods used by generators to finance their investments following the gradual decline in the mechanisms provided by governments to encourage the generation of renewable energy, is increasingly preferred between the parties in the energy sector as it is structured according to the needs of the parties.

RPPA, which is actually an electricity sale agreement, appears to be a new business model because, unlike conventional energy law contracts, which often restrict the parties to negotiate, the contracting parties are able to set the conditions for the purchase of any kind of electricity they wish based on the freedom of contract.

In order to be consider a power sales agreement as RPPA, the contract must contain some features.  For example, the relevant electricity sales contract may finance or re-finance a renewable energy plant.  In addition, the RPPAs will contain, unlike conventional electricity sales contracts, the provisions that determine what kind of source documents will be used to track that the purchased electricity is green[14].

  • RPPA Types

In international markets, different classifications for the RPPA types are made according to the nature of the parties, whether they benefit from any incentives or not, and the structure of the agreement.

  • Considering the nature of the parties, the distinction between Utility PPA and Corporate PPA is very important in terms of the provisions that must be included in the agreement. Utility PPA is concluded between a generator and a supply company, while Corporate PPA is concluded directly between the generator and an end-user consumer company[15].  In Corporate PPAs, a third intermediary company, usually assuming the responsibility of balancing, is also a party to the contract[16].
  • Another classification is made according to the product subject to RPPA. Electricity supply is carried out between the parties in the RPPA, which is referred to as the physical RPPA.   Physical RPPA is divided into on-site and off-site RPPA[17] depending on the use of the electrical grid for the supply of electricity.  The pricing of the agreement and the distribution of risk between the parties will differ depending on whether the grid is used for electricity supply.

In financial RPPA, the generator/supplier sells its electricity in the spot market.  The generator/supplier and the electricity purchaser/consumer agree on an agreement price in RPPA, and the difference between that price and the market price of electricity is offset between the parties.  Electricity supply between the parties does not occur in financial RPPAs[18].  With these RPPAs, the transfer of source documents can also be carried out.  These agreements, called contracts for difference, are considered a financial product and are subject to the capital market rules of the relevant country.

  • Why RPPA?

Among the objectives of corporate consumers to procure renewable energy, corporate social responsibility strategies are undoubtedly at the top.  Many companies are turning to renewable energy to meet the green demands of their customers and are trying to get involved in green supply chains.  However, the biggest factor in companies’ preference for renewable energy is the expectation that electricity cost generated from renewable energy sources will decrease perpetually and, besides, the carbon costs will increase in the long run [19].

While environmental responsibility causes corporates to procure renewable energy through all the other methods mentioned above, RPPA is the preferred model for corporates that want to create new capacity (additionality)[20] by constructing their own generation plants.

For power generators, however, RPPA is preferred for financing or refinancing of generation plants due to the gradual reduction of government incentives provided for renewable energy[21].  The transition of the energy market from an incentive-based model to free market conditions has led renewable energy investors to turn into alternative financing models.  Within the framework of the European Union Green Deal, the member states of the European Union have agreed to reduce carbon emissions in their own countries, as well as to supply the products they import from green supply chains.

RPPAs will also cause the parties to the agreement to create a guarantee against fluctuating electricity prices.  Long-term RPPAs allow both consumers and generators to make financial projections in terms of energy revenues and expenses.

In many countries, including Turkey, RPPAs are also considered alternatives to state-sponsored purchase-guaranteed tenders for the promotion of renewable energy generation.  That is, the investors participating in the tender are bound by the tender specifications presented to them, and these specifications include unilateral severe penalties in cases where they fail to complete the projects in time[22].  Although such penal clauses are stipulated in RPPA structures as well, the negotiability of these agreements by the parties is an important reason for the acceptance of the terms of the agreement by the parties.

  • Reasons Why RPPAs Are Not Preferred

Valid for the other corporate green energy procurement briefed above, the most important reason why RPPAs are not preferred is the changes in energy policies and, accordingly, in legislation.  Changes in the incentive system, changes in the items that make up the price of electricity (e.g. distribution price, RESSUM costs, etc.) slow down or even hinder the orientation of corporations towards renewable energy[23].

Although corporate social responsibility strategies cause corporations to prefer renewable energy, the main factor in decision making in the procurement/purchasing departments of corporations is that renewable energy does not cost more than conventional energy.  Therefore, the fact that electricity to be supplied with a RPPA does not, or is thought will not, cost less will cause companies to approach this structure with suspicion. Also, the procurement departments of corporations do not prefer RPPA because the structure of RPPA is more complicated than conventional power purchase agreements.[24]

Legislative and technical restrictions on the monitoring of the origin of the supplied electricity and the transfer of the origin documents are also seen as a hinder for of the corporations to procure renewable energy and, therefore, to be part of a RPPA[25].

  • Evaluation of RPPAs in Terms of Turkish Law
    • In Terms of Energy Legislation[26]
  1. General

As mentioned above, a RPPA is basically an electricity sale agreement, the provisions of which can be negotiated between the parties.  The parties are able to shape the provisions of the contract according to their own demands based on the freedom of contract.  Bilateral agreements concluded between supply companies can create a framework for RPPAs.

Although the term bilateral agreement is used in many legislation, its definition in Turkish electricity legislation is made in the Regulation for Consumer Services as follows: “The commercial agreements that are concluded between real or legal persons subject to the provisions of private law regarding the purchase and sale of electrical energy and/or capacity and not subject to the Board’s approval”.

According to this definition, a holder of a supply or generation license and the consumers who have the freedom to choose their supplier will be able to freely determine the contents of the electricity sales agreement that they will conclude.

Although the RPPAs are negotiated and concluded between the parties based on the freedom of contract, they will also contain the provisions subject to the legislation due to the regulated nature of the energy sector.

Since the provisions relating to grid connection, balancing obligations and transfer of origin documents regulated in legislation in some countries will differ in the legislation based on the capacity of the parties (such as free consumer, end consumer, authorized supply company[27]) to the agreement under the energy legislation or the characteristics of the generation plant (such as being already established or being to be established simultaneously with RPPA or being off-site or on-site) each of these matters must be evaluated separately within the RPPA.  In most cases, additional contracts arising from energy legislation will also have to be concluded with the parties to the agreement or third parties along with a RPPA.

Parties to RPPA prefer to enter into a service agreement for the services with a market access service provider (aggregator) assuming all market operations and risks, including balancing, under such agreement. Such contracts can be arranged within the RPPA or a separate service contract can be concluded with the relevant service provider.

  1. Documentation and Tracking of the Origin of Energy

In a RPPA, as we stated above, the tracking of the renewable energy sources is one of the most important elements of the agreement.  In Turkish electricity legislation, in Article 24 of the Regulation on Certification and Support of Renewable Energy Sources, it is stated that the Renewable Energy Source (RES) document shall be issued for the determination and tracking of the source type/origin of electricity generated from the power plant by the generators generating electricity from a renewable energy source accordance with its license[28] and for the utilization of the applications under RESSUM.  There is no regulation in the electricity legislation related to the bare transfer of RES documents (without the purchase of electricity).  However, the fact that it is stated that the RES document will be issued in order to take advantage of the RESSUM applications may mean that a power plant benefiting from a RESSUM application will not be able to make bare transfer of the RES document.   Moreover, the presence of certificates accepted in international markets will result in the transfer of the RES documents will not be preferred by foreign corporations or corporations with foreign partner in practice. In addition, despite these regulations in the legislation, the RES Document is not issued in practice.  Therefore, there is no circulation of the RES document in practice.

Since 2016, certification of Turkish renewable power plants through the I-REC system and the bare transfer of these certificates is possible.  In Turkey, first I-REC certificates was issued for Bayramhacılı hydroelectric power plant (HPP) with a capacity of 48 MW owned by Senerji Enerji Üretim A.Ş.[29]

The tracking of electricity generated from renewable energy sources in Turkey, although there is no certificate, can also be performed with contractual obligations through the trust relationship among the parties. The resource/origin of the generation facility is specified in the licenses issued on behalf of the proprietor of the generation plant.  The amount of electricity generated in these plants can be obtained with the data obtained from the market operator EPİAŞ at the end of each reconciliation period.

  • In Terms of Competition Law

In countries where the RPPA structure is used, another issue is whether the long-term conclusion of RPPA constitutes a violation of competition law legislation for the purpose of RPPA.

The reason for this assessment is the recognition that long-term contracts can have a disruptive effect on competition in the European Union, both at the union level and in accordance with the regulations contained in the competition law legislation of the member states[30].

The Turkish competition law legislation was created on the basis of the European Union competition law legislation and the aforementioned regulations are included in the Law on the Protection of Competition No. 4054 (the “Competition Law”) and the Communiqué on Group Exemption of Vertical Agreements No. 2002/2 (the “Communiqué”).

According to Article 4 of the Law, “Agreements and concerted practices between undertakings, and decisions and practices of associations of undertakings which have as their object or effect or likely effect the prevention, distortion or restriction of competition directly or indirectly in a particular market for goods or services are illegal and prohibited.”

Communiqué, on the other hand, regulates that agreements made between two or more enterprises operating at different levels of the production and distribution chain for the purpose of buying, selling or reselling certain goods or services (vertical agreements) shall be considered exempt from the prohibition mentioned in Article 4 of the Law, provided that they meet the conditions specified.

In addition, the communiqué provides that vertical agreements containing the obligation to provide to the sole purchaser may benefit from the exemption recognized in the communiqué provided that the purchaser’s share in the market in which the goods or services subject to the vertical agreement does not exceed 40%.

The obligation to provide to the sole purchaser is defined in subparagraph (h) of the first paragraph of Article 3 of the Communiqué as a direct or indirect obligation for the provider to sell the goods or services subject to agreement to only one purchaser within Turkey for its own use or resale purposes.

Also, according to Article 5 of the Law:

“The Board, in case all the terms listed below exist, may decide to exempt agreements, concerted practices between undertakings, and decisions of associations of undertakings from the application of the provisions of article 4:

  1. a) Ensuring new developments and improvements, or economic or technical development in the production or distribution of goods and in the provision of services,
  2. b) Benefiting the consumer from the above-mentioned,
  3. c) Not eliminating competition in a significant part of the relevant market,
  4. d) Not limiting competition more than what is compulsory for achieving the goals set out in sub-paragraphs (a) and (b).”

Also, Article 7 of Electricity Market Law No. 6446 limits the sector share of generation activities with the provision that “The total amount of electricity generated by a real or a private sector legal person through the generation companies under their control shall not exceed twenty percent of the total amount of electricity generated in Turkey published for the previous year.”

Also, in accordance with Article 10, the same Law specified the highest market share in this sector with the provision that “the amount of electricity to be sold by these private legal persons to final consumers shall not exceed twenty percent of the electricity consumed within the country during the previous year.” With these provisions, certain market shares were determined by energy legislation.

Although it is disputable that in the light of the above information, theoretically a long – term agreement may prevent new market entries and therefore be anti – competitive, considering that RPPAs provide an economic development, that the consumer will benefit it by obtaining long term price guarantee, that the market share in the Turkish energy generation or supply sector[31] will not be achieved[32], thus, the competition will not be disrupted due to the duration of RPPA – although each agreement needs to be evaluated individually -, we believe that it does not constitute a violation of competition law.

A long-term electricity sale agreement for a nuclear power plant in the European Union was exempted from competition restrictions for the reasons mentioned above[33].  In the decision concerned, taking into account the period of amortization of the generation plant, the requirement to provide cash flow through a long-term agreement for the economic amortization of the plant is stated[34].

 

 

  • In Terms of Capital Market Legislation

We have stated above that the financial RPPAs are the payment of the difference between the market price of electricity and the reference electricity price agreed in the agreement between the parties, without the physical supply of electricity between the parties.

With this definition, financial RPPAs will constitute a derivative product in the context of the Capital Market Law No. 6362.  Article 3 of the Capital Markets Law defines derivative instruments as follows:

“Instruments listed below or other derivative instruments designated in this context by the Board:  

1) Derivative instruments giving the right to buy, sell or interchange securities,

2) Derivative instruments the values of which depend on the price or return of a security; the price or a price change of a foreign currency; an interest rate or a change in the rate; the price or a price change of a precious metal or precious stone; the price or a price change of a commodity; statistics published by institutions deemed appropriate by the Board and changes in them; derivative instruments which provide the transfer of credit risk, which have measurement values such as energy prices and climatic variables and depend on an index level which is formed by these listed items or on changes in this index level; the derivatives of these instruments and derivatives giving the right to interchange the listed underlying assets.

3) Leveraged transactions on foreign exchange and precious metals as well as other assets to be designated by the Board,

Derivative transactions that will be traded between the parties over-the-counter basis, out of stock exchange, must be reported to the data storage authority authorized in accordance with Article 87 of the Capital Markets Law and Communiqué on the Principles Regarding the Reports to be Made to the Data Storage Institution (IV – 87.1), which is issued by the Capital Markets Board about the procedures and principles of this declaration.

However, according to the Communiqué “The reporting obligation for derivative contracts concluded by legal entities resident in Turkey other than investment institutions, between each other, or in foreign organized or over-the-counter markets without intermediation of an investment institution authorized by the Board, is assumed by the legal entities who are resident in Turkey. Within the scope of this paragraph, legal entities are public joint stock companies, collective investment schemes, portfolio management companies, mortgage financing institutions, housing finance and asset financing funds, asset leasing companies, financial institutions authorized as per the Banking Law No. 5411, dated October 19, 2005, insurance and reinsurance companies licensed as per the Insurance Law No. 5684, dated June 3, 2007, pension companies licensed as per the Individual Pension Savings and Investment System Law No. 4632, dated March 28, 2001, financial leasing companies, factoring companies and financing companies authorized as per the Financial Leasing, Factoring and Financing Companies Law No. 6361, dated November 21, 2012, as well as the companies designated by the Central Bank of the Republic of Turkey as per the Regulation on the Principles and Procedures for Monitoring Transactions Affecting Foreign Currency Positions by the Central Bank of the Republic of Turkey, published in the Official Gazette No. 30335 on February 17, 2018.

Therefore, financial RPPAs other than a RPPA concluded among the parties explicitly mentioned in the Communiqué are not subject to any reporting under capital market legislation. However, the Communiqué may, at the discretion of the Board, decide that some derivative instruments will be subject to reporting obligations.  When the application of financial RPPAs becomes widespread in our country, such reporting obligations may be introduced as in the international markets.

  1. Intermediate Conclusion

In accordance with the evaluations made above, RPPAs, which are basically an electricity sales agreement, can be concluded based on the freedom of contract, and there is no regulation preventing the conclusion of a RPPA in accordance with the Turkish law legislation examined in this article.

  1. RPPA Structure Template

Although it differs depending on the purpose and type of RPPA, we believe that the provisions set out in the table below should be included in the agreement.

Purpose

–       RPPA Type

–       Product description

Contract term

–       Under what circumstances is termination possible?

–       What happens if it is terminated before its term?

Rights and obligations of the parties

–       General

–       Operation of the plant

–       Balancing

–       Contracts to be concluded with third parties (connection)

–       Market Access Services

Default Situations

–       Nonpayment

–       Incomplete performance

Declarations and representations of the parties Effective Date
Amount of Electricity

–       What periods?

–       How much?

Bankruptcy provisions
Electricity Price

–       Calculation Method of the Price

–       Items included in the price (such as distribution price)

–       Adaption

Transfer of Source Document

–       Which method to be used for tracking

Connection Requirements Measure
Interruption cases

–       Maintenance cases

–       Cases arising from the system operator

Provisions of termination
Compensation and Liability Provisions Case of Substitute Procurement
Significant Adverse Change Provisions  
Safety Provisions General adaptation provisions
Other Provisions Renewal/Extension Options
Force Majeure States Insurance and Taxes

 

The provisions mentioned above should be evaluated for each individual agreement.  In a financial RPPA, for example, there will be no need for most of these provisions.  However, for a green-field project, apart from the provisions mentioned above, different contracts should be concluded for financing, installation, maintenance and finally for the sale of electricity, which all should be structured together.

 

 

DISCLAIMER:

This paper is intended to provide general information only. It cannot substitute for, or be used for the purpose of, legal advice or professional legal service.  You are advised to seek legal services for each concrete transaction.  No commitment is made for the correctness of the information given in the paper due to the rapid change in the legislation, practice and information.

REFERENCES:

 

  • Corporate Sourcing of Renewables: Markets And Industry Trends, IRENA 2018;
  • EU WWF Report Global Corporate Renewable Power Procurement Models Lesson from India;
  • ABlEG Nr. L 178, 1991, S. 31 – Scottish Nuclear;
  • Treaty on the Functioning of the European Union;
  • Commission Regulation (EC) No 2790/1999;
  • Analysis of the Trade in Guarantees Of Origin, Economic Analysis for Energy Norway OE-Report 2017-58;
  • Hilpert, Johannes, Rechtliche Bewertung von Power Purchase Agreements (PPAs) mit erneuerbaren Energien, Würzburger Studien zum Umweltenergierecht;
  • Energy Brainpool, Power Purchase Agreements: Finanzierungsmodell von Erneuerbaren Energien, 2018;
  • DFBEW, Corporate Power Purchase Agreements (Corporate PPAs) für erneuerbare Energien in Deutschland und Frankreich, 2018;
  • Raikar, Santosh; Adamson, Seabron, Renewable Energy Finance: Theory and Practice;
  • HSH Nordbank, Corporate PPA – Branchenstudie April 2018;
  • RE-Source Risk Mitigation for Corporate Renewable PPAs, March 2020;
  • PPA Academy Hamburg February 2020 Pexapark;
  • https://opensolarcontracts.org/#contracts
  • https://www.epdk.org.tr/
  • http://resource-platform.eu/
  • https://pexapark.com/
  • https://www.3megawatt.com/guide/ppa
  • https://www.euwid-energie.de/
  • https://www.rekabet.gov.tr/
  • https://europa.eu/
  • https://efet.org/
  • https://www.strommarkttreffen.org/
  • https://www.energybrainpool.com/

 

 

[1] For example RE100 or Renewable Energy Demand Enhancement (REDE)

[2] The term “unbundled energy attribute certificates” (EACs) is used in America for the term GO, which is adopted in Europe.

[3] In some countries, it is used as utility green procurement.

[4] Corporate Sourcing Of Renewables: Markets And Industry Trends, IRENA 2018 ve EU WWF Report Global Corporate Renewable Power Procurement Models Lesson From İndia

[5] There are also models where the contractor, the financier and the consumer are different in self-consumption model. In this tripartite relationship, the contractor sets up the system and leases it to the financier, and the financier sub-leases the system to the consumer.

[6]Corporate Sourcing of Renewables: Markets and Industry Trends, IRENA 2018, s. 51.

[7] Corporate Sourcing of Renewables: Markets and Industry Trends, IRENA 2018, s. 17

[8] The term “bare (çıplak)”, which is also used for share certificates in the Turkish Commercial Code, is suggested for the term which has not yet been used in the Turkish energy sector.

[9] Analysis of the Trade in Guarantees Of Origin, Economic Analysis for Energy Norway OE-Report 2017-58 s. 9.

[10] The term supply company is used for the term “utility”, which is used in international energy sector, in this model.

[11] Corporate Sourcing of Renewables: Markets and Industry Trends, IRENA 2018 s.49.

[12] https://www.epdk.org.tr/Detay/Icerik/3-0-72/elektrikyekdem

[13] https://www.enerji.gov.tr/File/?path=ROOT%2f1%2fDocuments%2fStratejik%20Plan%2f2019-2023%20Stratejik%20Plan%c4%b1.pdf

[14] Hilpert, Johannes, Rechtliche Bewertung von Power Purchase Agreements (PPAs) mit erneuerbaren Energien,  Würzburger Studien zum Umweltenergierecht, p. 2

[15] Raikar, Santosh; Adamson, Seabron, Renewable Energy Finance: Theory and Practice, p. 155.

[16] HSH Nordbank, Corporate PPA – Branchenstudie April 2018, p. 5.

[17] Physical or sleeved PPA

[18] Corporate Sourcing of Renewables: Markets and Industry Trends, IRENA 2018 s. 4

[19] European Commission, Competitiveness of Corporate Sourcing of Renewable Energy, Part 2 of the Study on the Competitiveness of the Renewable Energy Sector,  Final Report, ENER/C2/2016-501, 28 June 2019, p. 7.

[20] “Additionality”, new capacity creation in international RPPA applications, is one of the reasons why RPPA is particularly preferred by investors.

[21] Energy Brainpool, Power Purchase Agreements: Finanzierungsmodell von Erneuerbaren Energien, 2018, P. 2; DFBEW, Corporate Power Purchase Agreements (Corporate PPAs) für erneuerbare Energien in Deutschland und Frankreich, 2018, P. 11.

[22] Hilpert, Johannes, Rechtliche Bewertung von Power Purchase Agreements (PPAs) mit erneuerbaren Energien,  Würzburger Studien zum Umweltenergierecht, s. 10.

[23] European Commission, Competitiveness of Corporate Sourcing of Renewable Energy, Part 2 of the Study on the Competitiveness of the Renewable Energy Sector,  Final Report, ENER/C2/2016-501, 28 June 2019 p. 8.

[24] Pexapark Hamburg February 2020 Academy Documentation.

[25] European Commission, Competitiveness of Corporate Sourcing of Renewable Energy, Part 2 of the Study on the Competitiveness of the Renewable Energy Sector,  Final Report, ENER/C2/2016-501, 28 June 2019 p.9.

[26] We would like to underline that our evaluations in this section apply only to licensed power generation plants.

[27] Balancing and Settlement Regulation, Regulation Concerning the Customer Services, Connection and System Usage Regulation, Service Quality Regulation on Distribution and Retail Sales, and in particular Electricity Market Law.

[28] The reason the license emphasis is specifically stated here is that the RES document will be used for generator licensees and only for the identification and monitoring of proof of source type.

[29] https://balkangreenenergynews.com/green-power-certification-starts-in-turkey-via-i-rec/

[30] The Treaty on the Functioning of the European Union Article 101 and the rest; Commission Regulation (EC) No 2790/1999

[31] The market to be determined is of great importance in terms of determination of market shares. It needs to be considered as the generation or supply sector of electricity sold via RPPAs.

[32] For electricity generation share, see the EMRA Electricity Market Development Report for 2019 on p. 27, for installed power share, the same report on p. 30, for supply share, the same report on page 55 and more, supply side on p. 76 ff. The related report also examines competition issues in the Electricity Market under the heading Competition, page 75 ff.

[33] ABlEG Nr. L 178, 1991, S. 31 – Scottish Nuclear

[34] ABlEG Nr. L 178, 1991, S. 31 – Scottish Nuclear