Unprecedented Surge in Corporate Power Purchase Agreements: 2023 Record High Revealed

Hello, solar enthusiasts! Let’s dive into some exciting news that’s creating a buzz in the solar industry. A recent report by BloombergNEF reveals that corporations worldwide announced 46 GW of solar and wind power purchase agreements (PPAs) in 2023. These figures mark a 12% year-on-year increase, setting a new record in this calendar year.

Just pause and think about that growth! The global PPA market has surged by approximately one-third on average since 2015. The significant increase is driven largely by improving economics in critical regions like Europe and the imminent clean energy goals of various solar companies.

Kyle Harrison from BloombergNEF hits the nail on the head – “It has never been easier to buy clean energy as a corporation.” A variety of contracting structures are now readily available globally, making it simpler for companies to decarbonize their energy consumption. It’s clear that these PPAs are no longer ‘nice-to-have’; they’re central to many companies’ sustainability strategies.

Now, let’s get into a bit more detail. Europe saw its corporate PPA volumes skyrocket by 74% to 15.4 GW between 2022 and 2023. This growth is by far the largest we’ve seen in any region. As supply chain troubles eased and gas balances normalized after the energy crisis in 2022, corporate PPA prices in the region dropped rapidly, often outpacing the decrease in power prices.

On the other hand, the United States, while still the largest market for PPAs, saw a 16% decrease in PPA deals, marking a decrease from the record 20.6 GW achieved in 2022 to an announced 17.3 GW in 2023. The reason? Power prices didn’t rise at the same rates, leading to buyers deferring deal signings until the market recalibrates.

Another impressive information from the report is Amazon leading the corporate clean energy buyers for the fourth consecutive year, announcing 8.8 GW of PPAs, including 5.6 GW of solar PPAs. Amazon was closely followed by Meta announcing 3.1 GW of PPAs, all in solar.

The bottom line? Renewable energy sourcing through solar is no longer a future aspiration – it’s a present-day reality. As demand for power from the private sector is expected to surge due to the rise of artificial intelligence, the electrification of transport, and increased need for manufacturing, we’ll continue to see a greater incorporation of clean energy. As the market gears towards a sustainable future, solar panels for your home or a solar array for home could be your first, best option in contributing to a greener earth.

As you weigh the prospects of bringing solar energy into your homes or businesses, remember the critical role solar companies play in the global necessity of transitioning to renewable energy. Stay tuned to my blog for more insights and updates from the world of solar.

Original Articlehttps://pv-magazine-usa.com/2024/02/16/corporate-ppas-hit-record-high-in-2023-says-bloombergnef/

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