Germany’s plans to introduce a cap on power revenues and cut energy bills for one year will dampen interest in signing new power purchase agreements (PPAs) for the duration of the measures, according to analysts of consultancy Energy Brainpool.
On Tuesday, a draft law spelled out the German government’s plan to skim off 90% of windfall revenue from power producers above production costs and to limit the price of 70% of the power consumption of large industrial companies – typical PPA buyers – to EUR 130/MWh. The measures are designed to end in 2023 and 2024, respectively.
