Corporate Renewable Power Purchase Agreements
What 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. 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.