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Corporate Renewable Power Purchase Agreements have recently been making headlines, with large corporations such as Google and Amazon signing massive contracts to increase their use of renewable energy in their data centres and headquarters – but what exactly is a PPA and why have so many corporations shown interest in them?
Corporate Renewable PPAs (PPAs) allow corporates to purchase renewable energy directly from an energy generator. These PPAs allow corporates to reduce their carbon footprint and manage volatile energy costs, all while maintaining a fixed price per/kW of energy over a period of years. Overall, PPAs can be a win-win situation for corporations as they can reach both their economic and environmental objectives.
Joseph Kava, the Global Vice President at Google, comments on Google’s PPA experience saying, “since we’ve started doing our long term PPAs, we’ve seen many other technology and traditional companies follow suit, so I believe we’re starting to see industry in general realize that this is just not the right thing to do, but it’s good business as well.”
These agreements are changing the market terrain for renewables – the volume of these PPAs almost tripled in Europe in 2016 compared to the year before, with over 1 GW of capacity contracted. In the US, they accounted for almost half of the installed renewable energy capacity in 2016.
Corporates are playing a catalytic role for the deployment of renewables worldwide – which is why SolarPower Europe and WindEurope are bringing together the biggest buyers and sellers of clean energy in Brussels on 10-11 October in Brussels for RE-Source 2017.
This event is first of its kind to gather a range of multinational corporations, renewable energy developers and senior decision-makers to raise awareness, exchange information and facilitate connections in order to rapidly increase the procurement of renewable power. Participants will enjoy peer-to-peer learning, innovative workshops and unbeatable networking opportunities.
To learn more about PPAs and RE-Source 2017: resource-event.eu