Renewables

Corporate renewable PPAs heading toward another record year

Corporate PPAs heading toward another record year

Photo: Hans-Jürgen Münzer from Pixabay

Published

May 19, 2021

Country

Comments

0

Share

Published:

May 19, 2021

Country:

Comments:

0

Share

So far in 2021, producers and consumers of green energy in Europe signed corporate power purchase agreements (PPAs) for 2.9 GW, compared to 4 GW for the entire last year, according to the data from the European platform for corporate renewable energy sourcing RE-Source.

Corporate power purchase agreements were signed by first-time purchasers including Danish company Danfoss and Italian telecommunications company TIM as well as repeat customers like Amazon and Danone.

Manufacturer of energy-efficient solutions Danfoss has signed a 10-year fixed-price corporate PPAs with Ørsted to offtake the renewable electricity output of 27 MW of Ørsted’s 209 MW Horns Rev 2 wind farm, while TIM will purchase 3.4 TWh from renewable company ERG over the next 10 years.

Amazon is continuing towards its goal to power 100% of its operations with renewable energy by buying power from a 760 MW wind project in the Netherlands. The Danone-Iberdrola deal will bring online the largest solar power plant in Europe with an installed capacity of 590 MW.

Corporate renewable PPAs heading toward another record year

“We were extremely pleased when we looked into the data we collect on corporate renewable power purchase agreements (PPAs) and realised that, although we are only in the fifth month of the year, we have already surpassed the volume of PPAs signed during the whole of 2019 across Europe,” the European platform for corporate renewable energy sourcing RE-Source said.

Last year was record breaking for PPAs in Europe and RE-Source expects 2021 would follow suit.

Corporate PPAs to remain an important route to market for developers

According to ICIS, as many European markets move away from subsidising renewable buildout in coming years, corporate PPAs can be expected to remain an important route to market for developers.

Meanwhile, rising renewable capacity targets in Europe are set to ensure a steady stream of projects coming online, while increased public scrutiny towards corporations’ sustainability strategies could promote growing demand for corporate PPAs, it said.

An expected increase in wholesale power prices in most European countries in the second half of the decade, coupled with falling costs of renewable projects, is also set to promote corporate PPAs as a long-term price-hedging mechanism.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Etem Gestamp ppa solar private equity fund growth

Automotive components producer Etem Gestamp signs PPA deal in Bulgaria

07 August 2022 - Private Equity Fund - Growth and Etem Gestamp have signed a ten year power purchase agreement for 4 GWh of solar energy

Montenegro EPCG minimum price of 10 shares

Montenegro’s EPCG lowers minimum price for sale of 10% of its shares

05 August 2022 - Montenegro's state-owned utility EPCG cut the minimum price for its 10% stake to EUR 87 million from just above EUR 100 million

Kosovo emergency measures secure electricity supply

Kosovo* adopts emergency measures to secure electricity supply

05 August 2022 - Kosovo* introduced emergency measures for up to 180 days in the electricity supply sector because of the surge in power prices in Europe

Ravno municipality BiH solar wind power 200 MW

BiH’s Ravno municipality inks 200 MW in solar, wind power capacities

04 August 2022 - Investors signed contracts for wind and solar power plant of over 100 MW and a photovoltaic unit of up to 100 MW in Ravno in BiH