What are PPAs? Check out our graphic guide!
Corporate Renewable Power Purchase Agreements (PPAs) allow corporates to purchase renewable energy directly from an energy generator.
Why are Corporate Renewable PPAs rapidly emerging as a business model in Europe?
Because these PPAs allow corporates to reduce their carbon footprint and manage volatile energy costs. And PPAs mean corporates can maintain a fixed price per/kW of energy over a period of years.
Corporate Renewable PPAs are changing the market terrain for renewables. Over the last five years, 16 GW of new renewable energy sources have been contracted in Europe either through corporate renewable power purchase agreements (PPAs) or direct onsite installations. With over 150 companies committed to a 100% renewable electricity supply globally (through the RE100 initiative), corporate renewable sourcing has become a major business opportunity, boosting the economic competitiveness of corporates and reducing their carbon footprint.
Why are big corporates investing in renewables?
More and more companies are procuring or aiming to procure 100% renewable energy. Corporates are playing a catalytic role for the deployment of renewables worldwide.
By choosing renewable energy as a commercial and strategic priority, corporates are showing leadership and commitment in the global sustainability agenda.
“Since we’ve started doing our long term PPAs, we’ve seen many other technology and traditional companies follow suit, so I believe we’re starting to see industry in general realize that this is just not the right thing to do, but it’s good business as well.”
Global Vice President at Google
“This timely event will raise awareness of the huge opportunity presented by corporate sourcing of renewable energy. It will also identify barriers and propose solutions to facilitate companies, large and small, to procure more renewable energy.”
Head of Unit for Renewables and CCS Policy at DG Energy, European Commission
“In a world of volatile wholesale energy markets, a long-term deal with a renewables supplier gives some welcome price certainty. And as the costs of both solar and wind power continue to fall way beyond expectations, such deals are becoming increasingly attractive.”
Head of RE100, the Climate Group
“Corporate PPAs are a win-win: whilst enabling long-term contracts, they provide financial certainty for utilities and developers and they allow the chemical industry to contribute to sustainability goals. Corporate PPAs show that renewables are maturing into market based solutions.”
Director General of CEFIC
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