The global corporate renewable PPA market is growing fast as companies capitalize on falling costs to meet rising sustainable development targets.
The U.S. has led PPA growth but demand in Europe is increasing as a growing number of industrial groups and smaller enterprises enter the market. In the coming years, new European Union (EU) directives will accelerate demand by reducing barriers to PPA development.
«The momentum is really starting to happen in the corporate PPA space,» Ulrika Wising, Head of Solar and Storage at Macquarie Group investment bank, told the conference in Munich on February 27.
«We are actually seeing a lot of interest from the medium-sized commercial and industrial companies that are starting to have a sustainability agenda,» Wising said.
Growing demand from smaller offtakers is driving new PPA structures which include multiple counterparties and multiple contract durations, experts told the conference.
Going forward, greater PPA flexibility and new aggregator roles will widen the market to partial merchant models and higher-risk offtakers, they said.