Tripartite Contracting for Clean Electricity

The report proposes a tripartite contracting model for Europe, where a state-backed intermediary connects clean energy suppliers and industrial consumers. This mechanism aims to solve structural barriers in bilateral Power Purchase Agreements (PPAs), such as creditworthiness requirements for SMEs and the mismatch between variable renewable generation and industrial baseload demand. By pooling diverse technologies—including renewables, storage, and clean firm capacity—the intermediary can offer 24/7 clean power products and absorb counterparty risk. The document outlines an implementation roadmap involving the European Commission and Member States, emphasizing the need for harmonized Guarantees of Origin, improved two-sided Contracts for Difference (CfDs) design, and integrated grid planning.

• Tripartite contracts are structured as three-way agreements where a state-backed intermediary acts as a market-maker, procuring clean power from developers via long-term contracts (typically CfDs) and providing industrial consumers with fixed, predictable pricing through shorter-term contracts (typically PPAs).
• Existing bilateral PPAs in Europe are insufficient for the energy transition, covering only 3% of installed renewable and storage capacity in 2024. Barriers include the lack of creditworthiness among SMEs, high transaction costs, and the difficulty of matching variable renewable generation profiles with industrial consumption patterns.
• The tripartite model enables the creation of 24/7 clean energy products by pooling intermittent renewables with storage, demand response, and clean firm capacity (such as nuclear, geothermal, and biomass), which reduces the 'shaping costs' that individual industrial buyers would otherwise bear.
• European electricity prices remain highly sensitive to gas price volatility; for example, in March 2026, a conflict involving Iran caused Dutch TTF gas prices to rise from €31/MWh to an average of €45/MWh in the first week, increasing gas-fired electricity costs by over 50% in ten days.
• The European Commission has already launched two sectoral tripartite agreements as of September 5, 2025, focusing on 'Offshore Wind & Grids' and 'Energy Storage', with potential future expansion into biomethane, energy efficiency, nuclear energy, and data centre integration.
• To scale the model, the report recommends that the European Investment Bank (EIB) extend its PPA guarantee programs to include clean firm generation and brownfield technologies, and that Member States adopt hourly Guarantees of Origin (GOs) to enable precise 24/7 clean electricity matching.
• The report suggests the state intermediary could evolve through three stages: starting as an active market-maker and risk-absorber, transitioning to a backstop guarantor, and finally becoming a standards-setter and liquidity anchor as private markets mature.

APA

Spokas, K., & Romm, L. (2026). Tripartite Contracting for Clean Electricity. Clean Air Task Force. https://www.catf.us/resource/tripartite-contracting-for-clean-electricity/

Chicago

Spokas, Kasparas, and Lea Romm. Tripartite Contracting for Clean Electricity. Clean Air Task Force, 2026. https://www.catf.us/resource/tripartite-contracting-for-clean-electricity/.

Wikipedia

{{cite report |last1=Spokas |first1=Kasparas |last2=Romm |first2=Lea |title=Tripartite Contracting for Clean Electricity |publisher=Clean Air Task Force |date=9 June 2026 |url=https://www.catf.us/resource/tripartite-contracting-for-clean-electricity/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{spokas2026tripartite, author = {Spokas, Kasparas and Romm, Lea}, title = {{Tripartite Contracting for Clean Electricity}}, institution = {Clean Air Task Force}, year = {2026}, month = jun, url = {https://www.catf.us/resource/tripartite-contracting-for-clean-electricity/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }