The Corporate Power Purchase Agreement (CPPA) market is set to realise exponential growth as global corporations are now looking more at this market for renewable energy procurement solutions to fulfil their decarbonisation objectives.
Corporations bought a record amount of clean energy through PPAs in 2019, up more than 40% from the previous year’s record.
According to the Bloomberg New Energy Finance’s 1H 2020 Corporate Energy Market Outlook, some 19.5GW of clean energy contracts were signed by more than 100 corporations in 23 different countries in 2019. This was up from 13.6GW in 2018, and more than triple the activity seen in 2017.
The high profile RE100 campaign, a global corporate leadership initiative bringing together influential businesses committed to sourcing 100% renewable electricity, has seen some of the world’s largest companies commit to this goal.
The RE100 totaled 221 members through 2019, collectively consuming 233TWh of electricity in 2018, based on their latest filings – slightly less than South Africa’s entire power generation fleet.
Bloomberg New Energy Finance estimates these 221 RE100 companies will need to purchase an additional 210TWh of clean electricity in 2030 to meet their targets.
As onsite power becomes the new norm, CPPAs will likely continue to be the preferred choice in enabling corporates’ meet their decarbonisation goals while ensuring stable power supply and low energy costs.
This live discussion will provide information on the benefits and risks involved with regards to the evolving nature of CPPAs.