On 18 May 2022, the European Commission presented the REPowerEU plan outlining how the bloc plans on rapidly becoming independent of Russian oil and gas in light of the current geopolitical situation. This includes a suggestion to use renewable energy purchase agreements for European industries and businesses to have direct access to affordable renewable power to increase energy security and affordability in the EU. We assume this to result in temporary bearish price pressure in the short-term, while mid-to-long-term we see prices being supported via additional demand from conversion use cases such as green hydrogen.

Commission issues guidelines to speed-up renewable project permitting and PPAs