Connect with us

Hi, what are you looking for?


Clean Power

Renewable Energy Trends: Corporate Power Purchase Agreements

Renewable electricity power purchase agreements are looking quite attractive as a business model for corporations.

renewable energy shutterstock_334854653Michael Evans, Baker & McKenzie associate director of communications, recently wrote about its report on the rise of renewable Power Purchase agreements by corporates. “The report itself might not be newsworthy,” he stated, “but the trend is pretty big and seems set to continue.”

The report, titled “The Rise of corporate PPAs,” examines an emerging trend:

“From regulatory uncertainty to low fossil fuel prices, the renewable energy industry is challenged on a number of fronts around the world. But in the last three years a new development has emerged that has the potential to breathe new life into the sector – the corporate renewable energy power purchase agreement (PPA).”

Contents of the report include the following items:

  • Corporate renewable PPAs on the rise
  • US surges in corporate renewable PPAs
  • Market for corporate renewable energy PPAs has grown significantly over the last three years
  • Businesses are now purchasing electricity under long-term renewable PPAs directly from independent generators
  • Businesses are also investing in generation assets instead of buying power direct from utilities
  • Corporate renewable PPAs bring economic and sustainability-related advantages to the contracting parties, which is propelling the trend across the globe.
  • More corporations are expected to enter into PPAs in the coming 18 months
  • Corporate renewable energy PPA hotspots include the UK, Germany, South Africa, Mexico, Chile, Brazil, India, and China
  • Smaller companies are entering this market. Early entrants have been some of the world’s largest technology companies and they are still doing the biggest deals. But the market has seen a diverse set of corporations including retailers, pharmaceuticals and industrials entering into renewable PPAs.
  • In Europe, the market is increasingly seeing activity from small to mid-sized companies that are doing so via consortiums.
  • 60% of surveyed corporations exploring renewable PPAs cite economic factors as their primary rationale
  • Benefits of corporate renewable PPAs to ‘offtakers’ and generators may be large, but care needs to be given to risks that are unique to these deals.
  • Large corporations appear to prefer synthetic rather than standard PPAs

The report provides a worthy read for a mix of corporate employees, including sustainability experts, CFOs and environmentalists.

Image: solar panels and wind turbines via Shutterstock

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

is a writer, producer, and director. Meyers was editor and site director of Green Building Elements, a contributing writer for CleanTechnica, and is founder of Green Streets MediaTrain, a communications connection and eLearning hub. As an independent producer, he's been involved in the development, production and distribution of television and distance learning programs for both the education industry and corporate sector. He also is an avid gardener and loves sustainable innovation.


You May Also Like

Clean Power

Google & LevelTen Energy are dialing the renewable energy industry up to 11 with a new streamlined system for negotiating power purchase agreements.

Clean Power

Geothermal: An Energy Story in Three Chapters  Catch up by reading Chapter 1! Among numerous highlights in the National Renewable Energy Laboratory’s recently published Geothermal Power...

Clean Power

Commitment to sustainability has required untiring efforts from corporates. The race does not stop at 100% renewables. For taking up the sustainability reins, an...

Clean Power

The cost of commercial and industrial scale solar and wind power is still headed down. Power purchase agreement (PPA) contract prices examined in five...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.