Pricing structures for corporate renewable PPAs
Interest in corporate renewable power purchase agreements (PPAs) has soared in recent years, with companies wanting to gain greater visibility of their future electricity costs and decarbonize. While 2020 saw electricity demand decrease in many markets due to the COVID-19 pandemic, companies continued to procure electricity via PPAs, with capacity even increasing by 18% year on year compared to 2019 levels, according to BloombergNEF. This report aims to help businesses benefit from PPAs by providing an outline of the various pricing structures available, and commentary on their respective risk impacts, regional variations and settlement considerations to help businesses understand feasible options that are suitable for them.
