The length of Power Purchase Agreements (PPA) for small hydro energy in Austria has shown a steady increase. From 2013 to 2019, the PPA length remained constant at 13 years. A notable increase occurred in 2020, rising to 14 years, and continuing this upward trend, it reached 15 years by 2023.
As of 2023, the value stands at 15 unit years. Observing variations over the last two years, we see a year-on-year increase of 7.14% in 2023, following a 0% change in 2022. The compound annual growth rate (CAGR) over the last five years is 2.9%. Looking ahead, forecasts predict that by 2028 the length will reach 17 years, with a five-year forecast CAGR of 2.53% and an overall growth rate of 13.33% from 2024.
Future trends to watch for include potential regulatory changes, technological advancements in hydro energy efficiency, and market demand for renewable energy PPAs, which could impact the length of agreements. Continued support for renewable energy incentives will also be crucial in sustaining this positive trend.
