On 30 June, LevelTen Energy hosted a webinar for clean energy buyers in Germany.
The session explored some of the themes covered in our recent LevelTen Energy report, Taking Charge: A Buyer’s Guide to Germany’s Shifting PPA Market.
Experts from Germany’s clean energy landscape joined the call to share their perspective: a buyer, in the form of Christoph Drühe of BENTELER; an advisor, Dr. Johannes Wagner of Guidehouse Germany GmbH, and regulatory guru Nicolas Eschenbruch of Marktoffensive Erneuerbare Energien - German Energy Agency (dena).
From cannibalisation risk and the rise of battery storage to shifting regulations and moves towards hourly matching, the conversation romped through the most pressing issues faced by clean energy buyers in Germany today.
Here are seven key learnings that emerged during the conversation.
1. Hybridisation is essential to keep PPA values afloat
Market data demonstrates a persistent erosion of capture rates for standalone solar assets due to increased midday production. In contrast, hybrid products combining storage with generation consistently show higher relative value by mitigating risks associated with curtailment and negative pricing hours.
2. PPA contracts must allocate risk fairly between counterparties
The market is moving away from standardised "pay-as-produced" solar PPAs. Current contract negotiations increasingly focus on risk-sharing mechanisms to address supply-side volatility, with a growing reliance on storage to provide the flexibility that standardised solar-only products lack.
3. Regulatory uncertainty is muddying the waters
The current German regulatory environment, including anticipated EEG structural changes and upcoming grid fee reforms (such as ACNES), introduces significant planning uncertainty. This environment complicates long-term modelling for both new project development and buyer procurement strategies.
4. Diversification is key – and not just with technology
Market participants are increasingly utilising portfolio-level strategies to mitigate exposure to market volatility. This involves layering diverse technologies, as well as varying contract tenors and staggering start dates to flatten electricity cost curves and avoid the liquidity risks of concentrated contract expiration dates.
5. Hourly matching remains a noble, if not immediately achievable, goal for many buyers
While 24/7 matching (aligning hourly renewable generation with consumption) remains a key objective for corporate decarbonisation, current infrastructure, cost structures, and market maturity levels mean that achieving this on a broad scale remains a significant long-term challenge rather than a readily achievable operational standard.
6. New EEG opt-out rules may throttle PPA pipeline
New rules governing subsidy provisions are expected to allow only a one-time opt out in the first ten years, ending the freedom developers currently enjoy to step in and out of the scheme at will. This makes it far less likely for developers to leave the scheme to enter the private PPA market, or that their financial backers will allow them to take that risk. The appetite for the subsidies is attested by the rapidly declining prices seen in recent auction rounds, especially for wind. While older assets that lose their EEG subsidy will become available for offtakers, these will lack the additionality that many buyers need to meet their sustainability targets.
7. LevelTen makes transacting clean energy simpler and faster
As markets move and new deal types emerge, having access to reliable data and transactional capabilities is key. The LevelTen platform unlocks access to 1300+ developers in 37+ markets, making it the ideal place to run a competitive RFP and close deals that deliver real value.
To arrange a free tour of the LevelTen platform, contact our team today.
