From regulatory uncertainty to low fossil fuel prices, the renewable energy industry is challenged on a number of fronts around the world. But in the last three years a new development has emerged that has the potential to breathe new life into the sector – the corporate renewable energy power purchase agreement (PPA).
What are corporate renewable PPAs? Instead of buying power direct from utilities, a number of businesses are now purchasing electricity under long-term PPAs directly from independent generators, as well as investing themselves in generation assets. Though captive power and industrial power supply arrangements have long been a feature of the conventional power sector, the last three years have seen the growth of this phenomenon in the renewable energy sector, led by non-industrial corporate purchasers.
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