Market Research Report
Market Data - State of the World's Top Five Power Purchase Agreements Markets: Market Drivers and Barriers, Top 5 Markets, Key Market Forecasts
|Market Data - State of the World's Top Five Power Purchase Agreements Markets: Market Drivers and Barriers, Top 5 Markets, Key Market Forecasts|
Published: June 30, 2022
Guidehouse Insights (formerly Navigant Research)
Content info: 40 Pages; 40 Tables, Charts & Figures
Delivery time: 1-2 business days
In the energy transition, the decentralization of power systems and unbundling of power system services have enabled new revenue streams for energy asset owners, particularly for those with higher renewable energy (RE) technologies in their portfolios. Falling RE technology costs, increasing consumer tariffs, and stringent climate goals have led to the emergence of the power purchase agreement (PPA) market. At the same time, government subsidies and feed-in-tariffs that promote RE technologies have been losing relevance in the market and fading away. The PPA concept developed when private and public institutions began bypassing the utility companies to purchase energy directly from IPPs.
Private organizations have become proactive in reducing their carbon footprints without compromising their business operations. As a result, the role of RE in a company's energy strategy has been raised from a technical exercise to a strategic and commercial priority. As private companies' primary motivations begin encompassing better economics with long-term price visibility, sustainability through emission reduction, and climate leadership, they have increased their renewable electricity procurement. Although corporations see the corporate power purchase agreement (CPPA) as a strong alternative for RE procurement, the complex process and non-standardized structure leave them dependent on external sources to understand the risks and rewards involved.
This Guidehouse Insights report provides global forecasts for annual CPPA deals in terms of power capacity (MW) and project deployment spending ($ millions). These forecasts are segmented by region, by technologies, and by the top five markets. All forecasts cover the 10-year period from 2022-2031.