(Credit: Pixabay)A new report from Guidehouse Insights analyzes annual corporate power purchase agreement (CPPA) deals in terms of power capacity (MW) and project deployment spending. The report focuses on the key market trends in five world regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report identifies the top five markets across those world regions.
Falling renewable energy technology costs, increasing consumer tariffs, and stringent climate goals have led to the emergence of the power purchase agreement (PPA) market. In the energy transition, the decentralization of power systems and unbundling of power system services have enabled new revenue streams for energy asset owners, particularly for those with higher renewable energy technologies in their portfolios. North America currently leads the global market with an estimated capacity of 18,888.9 MW, which is expected to jump to 72,567.9 MW in 2031 at a CAGR of 16.1%.
"The PPA concept developed when private and public institutions began bypassing the utility companies to purchase energy directly from independent power producers," says Rohith Unni, research analyst with Guidehouse Insights, in a press release. "Private organizations have become proactive in reducing their carbon footprints without compromising their business operations. As a result, the role of renewable energy in a company's energy strategy has been raised from a technical exercise to a strategic and commercial priority."
As private companies' primary motivations begin encompassing better economics with long-term price visibility, sustainability through emission reduction, and climate leadership, they have increased their renewable electricity procurement. Although corporations see the corporate power purchase agreement as a strong alternative for renewable energy procurement, the complex process and non-standardized structure leave them dependent on external sources to understand the risks and rewards involved, according to the report.
The report, "Market Data: State of the World's Top Five Power Purchase Agreements Markets," provides global analyses for annual CPPA deals in terms of power capacity (MW) and project deployment spending ($ millions). These outlooks are segmented by region, by technologies, and by the top five markets. All analyses cover the 10-year period from 2022-2031.
