The growing importance of corporate RES Power Purchase Agreements

Corporate RES procurement through power purchase agreements (PPA) has experienced a significant surge in the past several years.

The increase has been evident in both the number of agreements and the MW capacities contracted. Initially solely a trend in the

U.S., these deals have recently become popular also in Europe and other parts of the world. The article gives an overview of the current state of development and provides background information on the different contract typologies and existing collaboration initiatives. Further, the key drivers behind the development, as well as the motivations of companies for signing a PPA are discussed. Finally, general implications for policy makers and a summary of the defining factors for the development are presented.