1Q 2023

Renewable Power Purchase Agreement Tracker 1Q23

Renewable Power Purchase Agreement Tracker

The pledge of full decarbonization by the mid-21st century relies heavily on green electrification of many sectors such as commercial services, industrial processing, transportation, and heating. The challenge is to meet the vast electricity demand coming not only from current business-as-usual scenarios, but also from the increasing need for electrification. Corporations and utilities are aware of this challenge and working hard to bring additional green electricity. Renewable power purchase agreements (PPAs) are a way to mitigate risks derived from renewable projects’ high upfront costs and unsure returns. Their numbers have risen rapidly with an estimated 200 GW of contracted capacity signed by mid-February 2023.

Interest in PPAs is being driven by corporates and utilities who have pledged to offset their Scope 1, 2 emissions, policy requirements to bring green “additionality” to the grid and demand to hedge the renewable electricity price. Currently, North America and Europe are the two most mature PPA regional markets, contributing to two-thirds of the PPA signed. Asia Pacific is accelerating on its PPA contracts, especially in India. Middle East & Africa tends to have utility PPAs with larger contracted capacity than the other regions. Latin America is catching up with more corporate investment, with Brazil leading the regional development.

This first edition of the Renewable Power Purchase Agreement Tracker from Guidehouse Insights covers virtual and physical corporate PPAs, utility PPAs, and other types of PPA across five principal geographical regions. The Tracker lists executed and planned projects and selected portfolios of PPAs 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. The tracker contains 1,479 contracts located globally recorded till mid-February 2023. It is updated continually and published every other quarter. The next update will be published in 3Q 2023.

Pages 12

Tables | Charts | Figures 17

Key Questions Addressed