What exactly are PPAs?
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, all while maintaining a fixed price per/kW of energy over a period of years.
Corporate Renewable Power Purchase Agreements are changing the market terrain for renewables – the volume of these PPAs almost tripled in Europe in 2016 compared to the year before, with over 1 GW of capacity contracted. In the US, they accounted for almost half of the installed renewable energy capacity in 2016.
WindEurope CEO Giles Dickson and SolarPower Europe CEO James Watson explain Corporate Renewable Power Purchase Agreements (PPAs)
Why are big corporates investing in renewables?Corporates are playing a catalytic role for the deployment of renewables worldwide. More and more companies are procuring or aiming to procure 100% renewable energy. Corporate PPAs in Europe had a dramatic increase in 2016 to 1.6 GW of capacity, almost triple when compared to 2015. By choosing renewable energy as a commercial and strategic priority, corporates are showing a leadership and huge 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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