This is how Hungarian companies can protect themselves against energy price fluctuations

By: Trademagazin Date: 2024. 11. 20. 11:06

The use of long-term green energy purchase agreements (PPAs) can significantly strengthen the competitiveness of European, including Hungarian, companies. The European Union encourages member states to promote the use of PPAs in order to avoid price fluctuations, which also provide many good examples, and the market offers increasingly innovative and mature solutions for companies in Hungary as well. László Pokol, CEO of Green Cloud, considers it particularly important that the topic is brought to the fore and that the companies concerned are more educated on the topic.

More and more economic decision-makers across Europe are recognizing the benefits and importance of long-term green energy purchase agreements. The contracted volume of the European PPAs market in terms of new renewable energy generation capacity involved expanded by more than 40% in 2023 to a new record of over 16 gigawatts (GW), and the market is expected to reach 20 GW this year. The longer-term outlook is also encouraging, with the European PPA market estimated to have entered its golden age, and the range of options available to customers is expanding.

“PPAs offer several significant benefits to companies that secure part or all of their long-term energy supply in this way. The main advantage of long-term power purchase agreements is the price stability they provide: PPAs allow companies to purchase clean electricity at competitive and predictable prices for years to come. This increases companies’ energy independence and security, contributes to strengthening the resilience of the European economy, and also promotes the spread of renewable energy. Due to regulatory, industry and consumer expectations, we consider it particularly important to increase the level of awareness of stakeholders on this issue,”

– says László Pokol, CEO of Green Cloud.
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