Renewable Energy PPAs: What Changes for Companies and How to Leverage It in 2026

Key data

Companies with high energy bills have a concrete opportunity on the table: to buy electricity directly from renewable producers, fixing stable prices over the long term and decoupling from the spot market. The problem so far has been the barriers that made this difficult. Recommendation (EU) 2026/917, published on 24 April 2026, asks Member States to eliminate them.

This recommendation does not oblige Spain to act immediately, but clearly guides the reforms it will need to address in its energy regulation. For companies, the message is clear: the framework for PPAs will improve, and those who position themselves early will have an advantage in costs and decarbonization targets.

What does this regulation establish?

The European Commission has issued a recommendation to Member States to facilitate the development of electricity purchase contracts (PPAs) and other energy purchase contracts. These agreements allow a company to acquire energy directly from a renewable producer, at an agreed price and over a long period, without going through the wholesale market.

The recommendation identifies three categories of obstacles that must be eliminated:

• Administrative obstacles: procedures, authorizations and bureaucratic processes that slow down or increase the cost of signing PPAs.
• Regulatory obstacles: national regulatory frameworks that do not contemplate or make it difficult for this type of direct contracts between producer and consumer.
• Financial obstacles: conditions for access to financing or guarantees that make these agreements economically unfeasible for many companies.

The stated objective is twofold: to promote corporate decarbonization and contribute to the achievement of the EU's climate objectives. By facilitating access to renewable energy with fixed long-term prices, companies can plan their energy costs with greater certainty and reduce their carbon footprint in a verifiable manner.

It is important to note that this recommendation is not binding. It does not impose sanctions or mandatory transposition deadlines. However, it acts as a clear political signal: Spain will need to consider these guidelines in its upcoming reforms of the energy regulatory framework.

Economic and operational impact

For companies, the potential impact of this recommendation translates into three concrete dimensions:

• Stability of energy costs: a PPA allows you to fix the price of electricity for years, eliminating exposure to spot market volatility, which in recent years has generated unpredictable bills for industries and large consumers.
• Competitive advantage in decarbonization: companies that access direct renewable energy can accredit its origin more robustly, which impacts their sustainability reports, compliance with customer requirements and access to green financing.
• Opportunity for renewable producers: the elimination of barriers facilitates solar and wind parks to close long-term contracts with companies, improving the bankability of their projects and reducing income risk.

The negative impact of not acting is also real: companies that do not explore PPAs will continue to be exposed to the spot market and will lose position against competitors who are already securing stable prices and sustainability credentials.

Who does it affect?

• Energy-intensive consuming companies: manufacturing industry, logistics, data centers, retail with large facilities, agribusiness. They are the main beneficiaries if barriers to PPAs are eliminated.
• Renewable energy producers: promoters and operators of solar and wind parks seeking direct contracts with companies to secure long-term income.
• CFOs and operations directors: responsible for planning energy costs and corporate decarbonization strategy.
• National energy regulators: the Ministry for Ecological Transition and the CNMC will need to assess the regulatory reforms guided by the recommendation.
• Energy and legal advisors: who assist companies in structuring long-term energy contracts.

Practical example

An industrial company with an annual electricity consumption of 20 GWh is exposed to wholesale market fluctuations. In years of high volatility, its energy bill can vary millions of euros from what was budgeted, making financial planning difficult.

If Spain implements the reforms recommended by the European Commission and eliminates the administrative, regulatory and financial barriers identified in Recommendation (EU) 2026/917, this company could sign a PPA directly with a solar energy producer, agreeing on a fixed price per kilowatt-hour for, for example, ten years. The result would be threefold: certainty in energy costs, accreditation of the renewable origin of the electricity consumed, and verifiable contribution to its decarbonization objectives without relying on guarantees of origin certificates purchased in the secondary market.

This scenario, today with regulatory and administrative friction, is precisely what the recommendation seeks to unlock.

What should companies do now?

1. Evaluate the energy consumption profile: identify whether the company is an energy-intensive consumer and whether it makes economic sense to explore a PPA. The higher the consumption, the greater the potential for savings and stability.
2. Review the current regulatory framework in Spain: although the recommendation is non-binding, it is advisable to know what barriers exist today for signing a PPA in Spain and what reforms are underway or planned.
3. Contact specialized advisors in energy contracts: the structuring of a PPA requires legal, financial and technical analysis. It is not a standard contract and its negotiation can take months.
4. Incorporate PPAs into the decarbonization strategy: if the company has emission reduction commitments (ESG, Science Based Targets, European taxonomy), PPAs are a direct tool to meet them with verifiable evidence.
5. Monitor regulatory reforms in Spain: given that the recommendation guides changes to national regulations, following the evolution of the regulatory framework will allow you to act when barriers are reduced or eliminated.

Official source

Recommendation (EU) 2026/917 of the Commission, of 22 April 2026, on removing barriers to renewable electricity purchase agreements and other energy purchase agreements. Official Journal of the European Union, 24 April 2026.