Power Purchase Agreements (PPAs) are transforming the European energy market. These contracts allow companies to lock in prices and secure renewable energy in the long term, a strategic solution in a context marked by the urgent need for energy transition, volatility and growing electricity demand.
Portugal has shown positive signs of wanting to keep pace with Europe in the rapid regulatory and market evolution underway. In this context, CATÓLICA-LISBON and Pérez-Llorca have joined forces to launch an executive program starting in January 2026, aimed at training professionals and companies in Portugal, particularly in the energy sector, to use PPAs as a strategic tool for sustainability and competitiveness. Carlos Vaz de Almeida, a partner at Pérez-Llorca, co-director of the programme and one of its lecturers, as well as lawyers Mads Bang-Christensen and Rasmus Nedregaard from the Danish law firm Accura, an international leader in the sector, are among the invited speakers.
“This type of contract is gaining increasing relevance in Europe for several reasons: amid strong energy price volatility and a degree of energy insecurity, PPAs offer predictability and act as instruments that hedge risk; the EU’s internal electricity market reform encourages long-term contracts as a way to reduce market risk, increase liquidity and support the development of renewable or decarbonisation projects; and more and more companies are setting decarbonisation targets and turning to PPAs to ensure that their energy consumption comes from renewable sources, strengthening the energy transition and their credibility with investors and partners,” explains Carlos Vaz de Almeida.
Regarding the importance of financial viability for renewable energy projects in Portugal, the specialist notes that PPAs “allow producers to secure stable and predictable long-term revenues, reducing exposure to electricity price volatility and ensuring more favourable financing conditions (for example, lower spreads, higher debt ratios and lower revenue-coverage requirements).”
Among the major challenges in implementing PPAs in Portugal are the slowness and unpredictability of licensing processes, constant regulatory changes, rising capital costs, market price volatility, growing electricity demand and pressure on supply. “From a legal standpoint, the challenges lie in defining clauses that ensure balance and stability throughout the contract, particularly the management of legislative changes, force majeure provisions, financial guarantees and price-revision mechanisms,” adds Carlos Vaz de Almeida.
Know more about the Electricity Transaction Market and PPA Program at CATÓLICA-LISBON | Executives