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The role of Power Purchase Agreements for the promotion of green energy and the transition to a zero carbon economy

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  • Tantau Adrian

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Niculescu Elena

    (Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

There are many debates regarding Power Purchase Agreements (PPAs), but there are only few studies that are analyzing the real role of PPA in promoting green energy and for the achievement of new climate targets. Although the demand for these types of contracts is increasing, the energy market at this moment is not very well developed and from this point of view there are just a few energy actors which actually succeed in closing such an agreement. The goal of this research is to identify and analyze the main factors which contribute to the development of PPA as a tool for promoting green energy and enable the transition to a zero carbon economy. For this research there are used questionnaires and interviews with experts from all of the parties involved in such a contract: producers, consumers, financial experts and energy experts. The article reduces the gap between the declaration of different stakeholders related to PPA and their involvement in the implementation and development of these contracts and estimates the main contributions of these contracts to the promotion of green energy and the transition to a zero net carbon economy. The results suggest that PPA play a major role in the renewable energy market and they will have a positive impact in what it means the consumption and transition to green energy and the achievement of climate neutrality.

Suggested Citation

  • Tantau Adrian & Niculescu Elena, 2022. "The role of Power Purchase Agreements for the promotion of green energy and the transition to a zero carbon economy," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 1237-1245, August.
    • Handle: RePEc:vrs:poicbe:v:16:y:2022:i:1:p:1237-1245:n:49
    DOI: 10.2478/picbe-2022-0113
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    References listed on IDEAS

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    1. Bruck, Maira & Sandborn, Peter & Goudarzi, Navid, 2018. "A Levelized Cost of Energy (LCOE) model for wind farms that include Power Purchase Agreements (PPAs)," Renewable Energy, Elsevier, vol. 122(C), pages 131-139.
    2. Busu Mihail & ClodniȚchi Roxana & MureȘan Manuela Liliana, 2019. "A correlation analysis of the spot market prices of the Romanian electricity sector," Management & Marketing, Sciendo, vol. 14(1), pages 150-162, March.
    3. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Rasoulinezhad, Ehsan & Rimaud, Cedric, 2021. "Power purchase agreements with incremental tariffs in local currency: An innovative green finance tool," Global Finance Journal, Elsevier, vol. 50(C).
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