Corporate PPAs: An International Perspective - 2024 edition
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We are pleased to release the 2024 edition of our International Corporate Power Purchase Agreements (Corporate PPAs) Report.
A Corporate PPA allows corporate energy consumers to purchase power directly, and on a long-term basis, from renewable energy generators, even if they are not located nearby. They provide an alternative to the traditional model, where businesses purchase power from utilities that gather energy from multiple generators. Corporate PPAs are long term agreements, typically between 10–20 years, that provide price certainty for both the corporate and the generator by using fixed or floor pricing structures.
2023 marked a strong year for Corporate Power Purchase Agreements (PPAs), with an impressive 46 GW of clean power deals being contracted through Corporate PPAs. Germany, Spain, France, the UK, Australia and the US were listed as the most attractive jurisdictions for Corporate PPAs, showing a global commitment to sustainable energy.
Globally, the corporate PPA market has grown 33% on average since 2015 and its growth is expected to continue in 2024, albeit at a slightly slower pace than in the previous two years.
Having advised on some of the earliest Corporate PPAs in the Netherlands (2007) and the UK (2009), we have become an experienced advisor on these structures globally. Our longstanding experience navigating the Corporate PPA landscape means that there’s not much we haven’t seen when it comes to advising on these evolving, and often complex, structures.
This report looks at the main drivers propelling the growth of Corporate PPAs globally. It addresses several innovative deal structures and provides an overview of market considerations in key jurisdictions across Western and Eastern Europe, the Nordics, Asia- Pac and the USA.
Read the report here.
