Market Overview: Demystifying Corporate Power Purchase Agreements
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Executive Summary
As the global shift from fossil fuels to renewable energy accelerates, power purchase agreements (PPAs) have emerged as a crucial tool for large firms to secure stable energy procurement, while achieving ambitious decarbonization targets. This surge in demand has given rise to a specialized market designed to assist firms in navigating the complexities of PPAs. This report should be utilized by senior executives in charge of decarbonization and energy procurement to better understand the benefits that PPAs bring to business operations and how they aid in achieving strategic energy and sustainability goals.
Table of contents
Firms turn to PPAs for renewable energy commitmentsWholesale energy procurement exposes firms to uncertainty and risk
PPAs 101
The PPA market has grown significantly in the past eight years
As the PPA market matures, off-takers demand more from their deals
Is a PPA right for you?
PPAs exist to unlock key stakeholder objectives
Decision-makers must appreciate and mitigate internal and external risks
PPA advisory firms play an essential role in improving PPA accessibility, particularly for smaller enterprises
Table of figures
Figure 1. Different types of PPAsFigure 2. Different types of PPAs, explained
Figure 3. Regulations, policies, targets and laws impacting PPAs across the globe
Figure 4. Decarbonization priorities for the real estate sector in the next three years
Figure 5. GW of PPA deals signed in 2017-2023
Figure 6. Top 10 largest PPA deals in 2023
Figure 7. PPAs satisfy the demands made of various stakeholders
Figure 8. Risks associated with PPAs
Figure 9. PPA advisory services span three areas of specialization
Figure 10. The road to PPA procurement
Organisations mentioned
Acciona Energia, Amazon, Aurora Energy Research, Bird & Bird, BloombergNEF, CCEE, Cepsa, Clean Power Alliance (CPA), DIF Capital Partners, Digital Power Optimization, DLA Piper, Edison Energy, EDP Renewables North America, Electricity Generation Authority of Thailand (EGAT), Enel, ENGIE, European Commission, Financial Settlement Center of Renewable Energy Sources, FlexiDAO, Google, GreenMatch, Grenergy Renovables, Grupo Ibereólica Renovables, HANSAINVEST Real Assets, Iberdrola, INEOS Oxide, LevelTen Energy, LyondellBasell, MathWorks, Mercedes-Benz, Meta, Microsoft, MOVE ON Energy, NextEra Energy Resources, Norton Rose Fulbright, Ofgem, Pattern Energy, Pexapark, Renewable Exchange, Sainsbury’s, Schneider Electric, Shell Energy Europe, Sierra Club, Solarpack, Squeaky Clean Energy, Statkraft, Steel Dynamics, The Blue Circle, Total Eren, TotalEnergies, UNFCCC, Utilyx, Volt Energy Utility, Walmart, Warrington Borough Council, Zeigo PowerAbout the authors
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