Key to Energy and SAFE organized, in the setting of the beautiful Villa Quintili on the Appia Antica in Rome, an event dedicated to banks and investment funds on the subject of power purchase agreements (PPA), ie long-term contracts which are configured as an instrument aiming to the development of renewable energy even in the absence of direct incentives to production.
These contracts, on the one hand, allow energy consumers, generally energy-consuming or even in aggregate form, to improve their cost management by setting a price for a pre-established period (typically over 10 years) and to reduce their carbon footprint; on the other hand, to the producers of energy, to be able to count on a long-term economic return able to reassure investors and make the investment.
The discussion highlighted how the instrument is immediately applicable also in Italy once it has been dealt with, with the most appropriate forecasting and modeling tools, the management of the various underlying risks (price, volume, counterparty, technological obsolete, regulatory).
The event was also an opportunity to highlight the peculiarities of a PPA as well as its enabling factors such as: accurate long-term forecasting tools; reliable reports to facilitate the evaluation of the loan; continuous market monitoring tools; the supervision of competent experts in legal and tax matters.
