The newly approved text of the Electricity Market Reform (EMR) asks Member States to facilitate the deployment of PPAs, making the contracts more accessible to smaller market players. Compared with the proposal’s original wording, CfDs or equivalent schemes could apply to all new public support for low-carbon and renewable projects.

As a result, we foresee an increased growth of PPA contracting over the coming years, with a potentially reduced supply of tradeable GOs on the market, if more power plants lock their capacity for PPAs. The proportion of supported GOs is likely to be unaltered.