cPPA

Despite the global Covid-19 pandemic and recession, corporate purchases of clean energy are booming. Several factors are driving this trend, including falling costs, a heightened appetite for sustainability among consumers and investors, and increased political will for net-zero development. In recognition of this, the UP Initiative spent Q3 2021 investigating sustainable electricity supply. How are PPA models evolving? What are the critical issues around residual energy? And how can greenwashing be avoided? Read on to discover more.

Corporate renewable energy purchases are at an all time high. In Europe alone, a record-breaking 4 GW of corporate power purchase agreements were signed in 2020, bringing the overall total to 15 GW. Globally, this figure is even higher. As part of the UP Initiative’s quarterly theme on ‘Sustainable electricity and corporates’ critical solar role’, pv magazine spoke to Hannah Hunt, Impact Director at RE-Source, a European alliance of stakeholders representing clean energy buyers and suppliers, about how the business model landscape for such purchases is evolving, and the challenges the sector faces, including shortages in renewable energy supply across Europe.

Following the easing of drastic measures to curb the spread of coronavirus, paused or decelerated PPA negotiations are starting to regain momentum as corporates signal their intention to stick to long-term carbon-reduction targets.

The brewery giant has joined the band of corporations cutting their carbon emissions with corporate PPAs. The deal now is the UK’s largest of this type. But elsewhere in Europe unsubsidized solar PPAs are also taking hold, indicating a striving industry despite a turn away from FIT schemes.