In 2023, companies across Europe will have achieved a remarkable milestone by securing a total of 7.8GW of new corporate renewable power purchase agreements- PPAs. This surpasses the previous record of 7.6GW that was set in 2021, and it’s worth noting that this achievement was reached with 2 months remaining in the year.
The RE-Source Platform, which happens to be an industry group for PPAs in the renewable energy sector, has released the data to mark its 2023 gathering organized at Amsterdam which is set to bring together 1,300 corporate buyers and sellers of renewable PPA energy from various parts of Europe.
Notably, the European PPA market is being driven by several sectors. This year, the IT sector has bought 2GW, heavy industry has got in 1.8GW, and telecoms has procured 650MW. Together, these sectors have accounted for more than 60% of corporate renewable PPAs.
According to the RE-Source Platform, the corporate PPA market is witnessing a growing presence from sectors such as retail, transport, as well as automotive industries. Policy and impact director at the RE-Source Platform, Annie Scanlan expressed her delight in welcoming more than 350 energy buyers to this year’s event. She also noted that there are an increasing number of companies that happen to be interested in securing their energy through renewable contracts.
Scanlan emphasised that there is still work to be done to expand the corporate PPA market. This expansion is essential for companies to effectively achieve their decarbonisation objectives and also support the European Union’s target of achieving 45% renewable energy by 2030.
She stated that the main barriers when it came to preventing the widespread adoption of renewable energy in businesses are the current regulatory barriers as well as the uncertainty surrounding EU legislation. In order to fully harness the benefits of Power purchase agreements, it is crucial that one prioritises the execution of the Renewable Energy Directive. Additionally, one must ensure that the revision of the electricity market design is passed swiftly and thoughtfully.
The RE-Source Platform is utilising its yearly gathering to urge EU policymakers to leverage the EU’s electricity market design so as to eliminate any remaining regulatory obstacles to corporate renewable PPAs. This will provide the necessary regulatory certainty to assist European businesses in achieving their net-zero objectives.
The group has identified several remaining challenges, such as addressing permitting delays for new wind as well as solar farms, ensuring renewable projects have access to the grid, and creating a stable and also investor-friendly environment.
The group is also looking out for support to effectively manage price risk. Additionally, they are requesting educational assistance to clarify PPAs and provide knowledge to procurement staff within the companies.