Whether or not it is the billigste strømavtale or cheapest power agreement, PPAs or Power Purchase Agreements are contracts where corporations concur to directly procure electricity from a generator of renewable energy instead from a utility. The advantage of PPAs is to arrange for financial assurance to generator of energy as well as the developer of the project, which eliminates a weighty barrier to putting up newfound renewable facilities. Hence, corporate PPAs aid to bring in added energy that is renewable into the grid, consequently cutting emissions of CO2.

New Record In  2018

Corporations in 2018 doubled up their acquisition of clean energy PPAs, purchasing clean energy that totaled to 3.GW. This figure is beyond twice the quantity of 6.1GW back in 2017.

As projects on clean energy turn out to be competitive in terms of cost, numerous governments are cutting down or taking out their arrangements on financial support. As this support will cease to exist, many are contemplating on how to get hold of funding for the continuous growth and expansion of clean energy. Because of this, PPAs are more and more being depended on to cover this gap. PPAs with a counterparty that is financially healthy aid to present a guarantee for developers as well as funding institutions that the venture is bankable. PPAs provide a number of advantages for corporations such as the lessened carbon footprint and for over a certain number of years, will be ensured a set per/kW energy.

Corporations and Clean Energy Generators For Clean Energy Projects

As published by BNEF or Bloomberg New Energy Finance, a new standpoint is brought to light, where the importance of corporations are on the rise, who are on a worldwide scale contesting utilities as the major buyers of clean energy. In the published 1H 2019 Corporate Energy Market Outlook, it was discovered that in 2018, 13.4 GW of clean energy agreements were contracted by 121 corporations in 21 various markets. This outcome went beyond the 6.1 GW of PPAs that were formed in 2017.

US is, at present, the major market for PPAs that are corporate in nature. It houses about 60% of PPAs, with Middle East, the EMEA region in Africa and Europe in second spot with 2.3GW, which is twice the total of 2017. On the lead is Facebook, a tech giant which in 2018 procured more than 2.8 GW worldwide.