23 May 2022

European Commission recommendations on PPAs and Guarantees of Origin

On 18 May 2022, the European Commission adopted a staff working document of guidance (scroll down the ‘commission adoption’ section) to Member States on good practices to speed up permit-granting procedures for renewable energy projects and on facilitating Power Purchase Agreements. The document made the following recommendations related to guarantees of origin:

  1. The Member States can facilitate the development of the PPAs through [inter alia] allowing the issuing of Guarantees of Origin in public support schemes, so that the revenue from the Guarantees of Origin reduces the need for public financing.
  2. The Member States can facilitate the development of the cross-border PPAs through [inter alia]
    • removing regulatory barriers affecting the transfer of guarantees of origin to off takers;
    • further harmonisation of the rules for the use of guarantees of origin across countries; and
    • supporting the development of reliable, accurate and fraud-resistant guarantees of origin systems in third countries.

RECS responded to the consultation upon which these recommendations are based and supports their implementation by EU Member States. However, given the climate emergency we are facing, RECS does not support any overall reduction in public financing for renewable energy projects and systems. Instead, where revenue from GOs can reduce public support for a given project, that support should be directed to other renewable energy projects for which it may be needed.