2023 has set new records in the PPA market with 7.8 GW of renewable capacity secured year to date. By the end of Q3, companies in the ICT sector (2 GW), heavy industry (1.8 GW) and telecoms (650 MW) were responsible for signing over 60% of corporate renewable PPAs, according to RE-Source PPA market data.
Other sectors like retail, transport, and automotive industries are playing an increasingly important role in the decarbonisation of industry and the transition to a renewables-based electricity system.
The European Commission’s electricity market design (EMD) proposal and the European Parliament’s work on the file recognise PPAs as a crucial tool for supporting the energy transition in Europe. But the EU measures to address the energy crisis created new challenges for the PPA market. With the clear steer from the Commission to end these measures; and the phase-out of the unhelpful revenue caps in many countries, the future looks even brighter for PPAs.
If Europe wants to see the PPA market’s growth continue and for industry to unlock even greater levels of green energy, the remaining barriers need to be removed. Alongside the critical need to ensure regulatory certainty with the end to market caps, corporate energy buyers are calling for:
- More renewables: Reliable grid access; and faster permitting for new wind and solar farms.
- A stable, investor-friendly environment and full implementation of all EU legislation is critical.
- Reduced risk: Support to manage price risk and prove bankability.
- Education: Support to demystify PPAs and educate procurement staff in companies.
