All Reports
2Q 2022

Market Data: State of the World’s Top Five Power Purchase Agreements Markets

Market Drivers and Barriers, Top 5 Markets, Key Market Forecasts

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.

Pages 40
Tables | Charts | Figures 40
  • What is PPA?
  • Why do corporations see PPA as a stronger alternative for RE procurement?
  • How can global initiatives help corporations achieve a green image?
  • What are the differences between a physical PPA and a financial PPA?
  • What are the advantages and disadvantages of physical and financial PPAs?
  • What are the major drivers for CPPA market growth worldwide?
  • What are the major market barriers to the growth of CPPA worldwide?
  • What are the major CPPA market trends in each world region?
  • What are the major CPPA market trends in the top five world markets?
  • Corporations
  • Renewable energy developers
  • Energy storage technology firms
  • Renewable energy financing companies
  • Government and regulatory agencies
  • Utilities
  • Investor community
  • Banks

1. Executive Summary

1.1      Introduction

1.2      Key Market Trends

1.3      Global Market Outlook

2. Market Overview

2.1      The Emergence of PPA Markets

2.2      Achieving RE Strategies with PPA

2.2.1     Physical or Sleeved PPA

2.2.2     Virtual or Financial PPA

2.3      Green Tariff Programs

2.4      Market Drivers

2.4.1     Phasing Out Government Subsidies and FiT Schemes

2.4.2     Increasing Corporate Responsibility Toward Sustainability

2.4.3     Hedging Against Price Risk and Ease of Obtaining Financing

2.5      Market Barriers

2.5.1     Regulatory and Policy Barriers

2.5.2     Risks Associated with PPA Contracts and a Complex Process

2.6      Regional Analysis

2.6.1     North America

2.6.2     Europe

2.6.3     Asia Pacific

2.6.4     Middle East & Africa

2.7      The Top 5 PPA Markets in the World

2.7.1     United States

2.7.2     Spain

2.7.3     Sweden

2.7.4     Germany

2.7.5     India

3. Market Forecasts

3.1      Forecast Methodology

3.2      North America

3.3      Europe

3.4      Asia Pacific

3.5      Latin America

3.6      Middle East & Africa

3.7      Top 5 Corporate PPA Markets in The World

3.7.1     United States

3.7.2     Spain

3.7.3     Sweden

3.7.4     Germany

3.7.5     India

4. Conclusions and Recommendations

4.1      Aggregated PPA Is a Way for RE Developers to Attract Small Businesses

4.2      Buyers Should Educate Themselves on a PPA’s Financial Benefits and Risks

4.3      Considerations for Offtaker Options

5. Acronym and Abbreviation List

6. Table of Contents

7. Table of Charts and Figures

8. Scope of Study, Sources and Methodology, Notes

  • Annual CPPA Volume and Revenue by Region, World Markets: 2022-20231
  • Annual CPPA Volume and Revenue by Technology, North America: 2022-2031
  • Annual CPPA Volume and Revenue by Technology, Europe: 2022-2031
  • Annual CPPA Volume and Revenue by Technology, Asia Pacific: 2022-2031
  • Annual CPPA Volume and Revenue by Technology, Latin America: 2022-2031
  • Annual CPPA Volume and Revenue by Technology, Middle East and Africa: 2022-2031
  • Annual CPPA Volume and Revenue by Top 5 Markets in the World: 2022-2031
  • Annual PPA Volume and Revenue by Technology, US: 2022-2031
  • Annual CPPA Volume and Revenue by Technology, Spain: 2022-2031
  • Annual CPPA Volume and Revenue by Technology, Germany: 2022-2031
  • Annual CPPA Volume and Revenue by Technology, Sweden: 2022-2031
  • Annual CPPA Volume and Revenue by Technology, India: 2022-2031
  • Physical PPA
  • Virtual PPA
  • Annual CPPA Volume by Region, World Markets: 2022-2031
  • Annual CPPA Revenue by Region, World Markets: 2022-2031
  • Annual CPPA Volume by Technology, North America: 2022-2031
  • Annual CPPA Revenue by Technology, North America: 2022-2031
  • Annual CPPA Volume by Technology, Europe: 2022-2031
  • Annual CPPA Revenue by Technology, Europe: 2022-2031
  • Annual CPPA Volume by Technology, Asia Pacific: 2022-2031
  • Annual CPPA Revenue by Technology, Asia Pacific: 2022-2031
  • Annual CPPA Volume by Technology, Latin America: 2022-2031
  • Annual CPPA Revenue by Technology, Latin America: 2022-2031
  • Annual CPPA Volume by Technology, Middle East & Africa: 2022-2031
  • Annual CPPA Revenue by Technology, Middle East & Africa: 2022-2031
  • Annual CPPA Volume by Top 5 Markets in the World: 2022-2031
  • Annual CPPA Revenue by Top 5 Markets in the World: 2022-2031
  • Annual CPPA Volume by Technology, US: 2022-2031
  • Annual CPPA Revenue by Technology, US: 2022-2031
  • Annual CPPA Volume by Technology, Spain: 2022-2031
  • Annual CPPA Revenue by Technology, Spain: 2022-2031
  • Annual CPPA Volume by Technology, Sweden: 2022-2031
  • Annual CPPA Revenue by Technology, Sweden: 2022-2031
  • Annual CPPA Volume by Technology, Germany: 2022-2031
  • Annual CPPA Revenue by Technology, Germany: 2022-2031
  • Annual CPPA Volume by Technology, India: 2022-2031
  • Annual CPPA Revenue by Technology, India: 2022-2031
  • Advantages and Disadvantages of a Physical PPA
  • Advantages and Disadvantages of the Virtual PPA
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