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.Wholesale 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
Figure 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
About the Authors
Gus Brewer
Analyst
Gus is an Analyst in the Verdantix Net Zero & Climate Risk practice. Prior to joining Verdantix, Gus worked at Rio ESG, where he gained experience as a sustainability cons…
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Harry Wilson
Senior Analyst
Harry is a Senior Analyst in the Verdantix Real Estate & Built Environment practice. Harry's research and advisory expertise centres on energy management; he leads Verdant…
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Ryan Skinner
Research Director, Net Zero & Climate Risk
Ryan is the Research Director for the Verdantix Net Zero & Climate Risk practice. He guides the research team to develop compelling research at the intersection of net zer…
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