Identification and Analysis of Main Drivers and Barriers to the Promotion of PPAs for Green Energy

With the current climate change, decarbonization is essential to the global energy transition. In this regard many instruments have been created or developed, Power Purchase Agreements, as a direct legal contract between a power provider and a power buyer, being one of the most popular instruments to increase the use of renewable energy. But sometimes, Power Purchase Agreements get violated due to the elements that constrain and prevent its development and implementation. This situation only brings a certain insecurity to the PPA, and the result is nothing other than to compromise its true role and to distance it from the achievement of the objectives established in its contents. The main goal of this research is to identify and analyze the main drivers and barriers which constrain or prevent the development and implementation of Power Purchase Agreements as a tool for promoting green energy. For this research the comparative analysis, survey based on questionnaires, Spearman’s correlation matrix and IBM SPSS Statistics for Windows are used. The article reduces the gap among the respondents' opinion regarding the Power Purchase Agreements and their involvement in the implementation and development of these contracts, roughly establishing the level where the PPA is located in the transition to green energy. The results suggest that Power Purchase Agreements play a major role in the renewable energy market and they will have a positive impact in what it means the transition to green energy and the achievement of climate neutrality. Therefore, although Romania is a country rich in energy resources that allow the achievement of climate neutrality, it is necessary to take additional measures to attract investors, whose investments will be crucial in the development of energy from renewable energy sources, the three Power Purchase Agreements concluded up to now, regardless they represent a gratifying step, they are not enough to talk about a real Power Purchase Agreement market.