Analyst Insight Megatrends Impacting Power Purchase Agreements

The Renewable Power Purchase Agreement Tracker 1Q23 is the first edition of a new report from Guidehouse Insights covering virtual and physical corporate power purchase agreements (PPAs), utility PPAs, and other types of PPAs across five principal geographic regions. The Tracker lists executed and planned projects and selected PPA portfolios by year announced, PPA type, project name, country, region, seller, offtaker, offtaker's industry, contracted capacity, contracted energy, tenure, contract start year, and energy source. Its purpose is to provide the best up-to-date global summary of PPAs by highlighting key trends and dynamics across regional markets and customer segments and by generation technology. The Tracker is updated continually and published every other quarter; the next update will be 3Q 2023.

This accompanying Analyst Insight explores emerging features of the dynamic PPA market in the US and other leading regions around the world. PPA contracts are expanding globally, with the US leading in total number of agreements, as national incentives—such as the US Inflation Reduction Act (IRA) passed in August 2022—support the development of the renewable components used in new projects. Topics covered in this report include PPA market inflection trends, drivers, and barriers; top markets, tenure, and component capacity; the effect of the IRA on PPA markets; case studies exploring new and innovative projects; and a regional market overview.