The World Business Council for Sustainable Development (WBCSD) recently released a report titled “Corporate Renewable Power Purchase Agreements Scaling Up Globally.” This report is a comprehensive study of the growing trend of companies around the world to purchase renewable energy directly from producers.
The report provides an in-depth analysis of the current state of corporate renewable power purchase agreements (PPAs) and their potential for continued growth. Corporate PPAs are contracts between companies and renewable energy producers that guarantee the purchase of a specific amount of renewable energy for a set period of time.
One of the key findings of the report is that the use of corporate PPAs has expanded significantly in recent years. The number of companies signing PPAs increased three-fold between 2015 and 2018, and the total capacity of these agreements grew from 4.4 gigawatts to 19.5 gigawatts during that time.
The report also highlights the benefits of corporate PPAs. Companies that sign these agreements can reduce their carbon footprint and increase their use of renewable energy. In addition, PPAs can provide price stability and long-term cost savings for companies, as they are able to negotiate favorable rates for renewable energy.
The report identifies several key drivers of the growth in corporate PPAs. These include favorable government policies and regulations, the increasing availability of renewable energy sources, and the growing demand from consumers and investors for companies to take action on climate change.
However, the report also identifies several challenges that must be addressed in order for the market for corporate PPAs to continue to grow. These challenges include regulatory barriers, legal and governance issues, and challenges related to financing.
Overall, the report provides a valuable overview of the current state of the market for corporate PPAs, and the potential for continued growth in this area. As more companies around the world commit to transitioning to renewable energy sources, it is likely that the use of PPAs will continue to expand, driving further investment in renewable energy and contributing to the fight against climate change.