Risk Assessment for Power Purchase Agreements as a Tool for Promoting Green Energy
Risk Assessment for Power Purchase Agreements as a Tool for Promoting Green Energy

Author(s): Adrian D. Tanţău, Elena Niculescu
Subject(s): Law, Constitution, Jurisprudence, Law and Transitional Justice, Law on Economics, Commercial Law
Published by: Societatea de Stiinte Juridice si Administrative
Keywords: power purchase agreement; risk assessment; renewable energy; green energy; force majeure;
Summary/Abstract: In a world where the climate neutrality commitments is increasing and the states are starting to take serious measures regarding the achievement of a zero carbon economy and the stopping of pollution, renewable power purchase agreements can be a very suitable solution for reaching these targets. Although we can see an improvement of the demand of these contracts, the energy market has some gaps, especially from a legislative point of view. The goal of this research is to identify and analyse the risks that may occur in the performance of the PPAs as a tool for promoting green energy. For this research there are used the comparative analysis and survey based on questionnaires completed by different categories such as producers, financial and energy experts, industrial and small consumers. The article reduces the gap regarding the understanding of the associated risks of the PPA, on one side, ans on the other side it tries to find the most suitable way in which these could be divided between the parties in the contract. The results suggest that although there have been made some changes in the legal framework regarding these types of contracts, there is still place for improvement, the lack of confidence in the law being the main factor that leads to the hesitation to enter in such contractual relations non-legislation or insufficient legislation of the PPA representing one of the risks most often assumed by the parties. The implications of the study are at the theoretical level: approaching a little-studied topic in the context of the development of some legal frameworks in order to promote green energy, clarification of some theoretical aspects regarding the assumption of contractual risks.

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