Poland has moved up from 10th to seventh place in RECAI’s ranking assessing the PPA (Power Purchase Agreement) market, i.e. contracts for the long-term purchase/sale of renewable electricity. The reason for the growing attractiveness of the PPA market in Poland is the increasing number of contracts with relatively large denominations: suppliers offer PPAs with an average capacity of around 60 MW, according to the latest edition of the EY RECAI index.
“Increasingly, PPAs involve several technologies at the same time, e.g. include wind and solar, which is also related to risk management by financing institutions,” said EY partner and leader of the Energy Department in Poland and the CESA region Jarosław Wajer.
Globally, a record number of corporate PPAs were concluded in 2023. For that, earlier this year, due to low energy prices, some corporations decided to review their contract portfolio, the material highlighted.
“On the other hand, in the main index measuring the country’s attractiveness for renewable energy investors, Poland’s position dropped for the first time in years. Compared to last year’s ranking, Poland was ranked 18th, three places lower than in the previous survey. At the same time, in the ranking taking into account the GDP of individual countries, Poland is ranked 17th, it was reported.
In the RECAI index, which EY has been publishing since 2003, the United States has remained in first place for years. China is now second (up one position), while Germany has dropped from second to third place. Belgium has risen as many as four places to 17th, and Argentina, thanks to the new government’s commitment to stimulating the economy, is three positions higher at 26th.
The RECAI index covers the 40 largest markets in the world. From 2021, EY also publishes a second ranking – the attractiveness of the market for long-term PPAs for the purchase and sale of renewable electricity. This year’s ranking also included energy storage (instead of offshore technologies), which changed the weights and reduced the overall share of solar, onshore wind and offshore wind.
Source: EY and ISBnews
