Think RE contributed to the Global Procurement Update

June 3, 2022

Global Procurement Update

Issue 7: March 2022

CEO and co-founder of Think RE, Dr. Steffen Hundt, recently drafted an article for the Clean Energy Buyers Association CEBA about the Romanian renewable energy market. 

The Global Procurement Update (formerly the C&I Procurement Update) comes out three times a year. Energy customers on a large scale who are operating in the commercial and industrial (C&I) sector have to reduce their energy impact worldwide. The Global Procurement Update highlights international energy market updates and connects members with international organizations supporting sustainability practitioners. This tri-annual update also communicates best practices implemented in the market to accelerate the procurement of renewable energy (RE). 

CEBA activates a community of nearly 300 members – representing more than $7 trillion in annual revenues and 14 million employees – to deploy solutions for a carbon-free energy system. Most members are institutional energy customers of every type and size – corporate and industrial companies, universities, and even cities.

Think RE's contribution showcases how the Romanian regulator restored full legal certainty for Power Purchase Agreements (PPAs) on 31 December 2021. Since 2012, over-the-counter PPA transactions were banned, preventing investors from securing stable revenues in the long term. In addition, the Romanian Green Certificate (GC) subsidy system only covered projects that were commissioned by the end of 2016. This has led to a lack of RE capacity additions in recent years. By lifting the ban on PPAs, Romania aims to attract new investments in RE capacity and achieve its target of 49.4% of electricity from renewable sources by 2030.

“Despite the restoration of the legal ability to enter into PPAs, it remains to be seen whether there are enough financially strong companies in the market willing to enter into long-term PPAs that meet lenders' requirements. However, recent extreme price spikes may encourage companies to sign PPAs for long-term price hedging reasons in addition to their sustainability goals, ” said Dr. Steffen Hundt, CEO and Co-Founder at Think RE.