/LONDON, December 14, 2022, 09:00 GMT, PR Newswire/ The European corporate renewable PPA market has proliferated by an almost seven-fold increase from 2016 until 2021. EU energy ministers agreed at the end of November 2022 on the content of a Council Regulation for a temporary framework to accelerate the permit-granting process and the deployment of renewable energy projects. Reduction of permitting burden shall contribute to corporate PPAs, which are essential for the European Union (EU) to achieve energy independence and its REPowerEU targets. Many companies use corporate PPAs to hedge against unpredictable energy prices, reveals the recently published study Europe Corporate Renewable PPA Market Report 2023÷2032. Amazon, Google, Alcoa, Norsk Hydro, Bayer and Microsoft are among the key players in the market. The sharp increase and volatility in energy prices will likely support European corporate renewable PPAs demand.
The European corporate PPA market has grown to a cumulative capacity of over 24 GW between 2013 and 2022(YTD), according to the Renewable Market Watch™. In 2021 alone, approximately 8 GW of corporate PPAs were contracted in Europe. Solar represents the majority of commercial and industrial onsite installations, including self-consumption projects, onsite PPAs, and near-site private wire PPAs. Wind represents most of all installed corporate renewable PPA capacity in Europe in 2021 and 2022 (YTD). Spain is the European corporate renewable PPA market leader in the 2013 – 2022 top 10 ranks with over 24 per cent of the total capacity, followed by Sweden, Norway, the UK, Germany, Finland and the Netherlands, Denmark, France and Poland.
In an increasing number of countries, the cost competitiveness of solar and wind, along with the reduction of support schemes and subsidies, is in favour of corporate PPA structures. The corporate renewable PPA boom has driven thousands of megawatts (MWs) of new solar and wind power capacity additions in the past decade in European countries like Spain, Germany, Norway, Sweden, Denmark, Poland and others. Several EU member states have already committed to 100% renewable or zero-carbon power targets, while the EU is pursuing a zero-emissions target by 2050. More European countries will modify their regulatory framework to support corporate renewable PPAs within the next two years.
Over 60 per cent of European demand is driven by large corporations, mainly from ICT and heavy industry, concentrated in a few countries. With the reduction of barriers to renewable projects, small and medium-sized companies also will turn to corporate sourcing of energy. The corporate renewable PPAs shall be crucial in the non-subsidised renewable energy market growth and green hydrogen generation in Europe by 2032. The Renewable Market Watch™ projects the governments of most European countries will create competitive regulatory frameworks enabling and facilitating the implementation of corporate renewable PPAs by 2025.
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This unique, thorough and detailed market report offers an incisive and reliable overview of the European corporate renewable PPA market for 2023 ÷ 2032. The number of fully permitted and ready-to-build projects has promptly increased. In most countries of Central and Eastern Europe and Western Balkans, the corporate PPA market is not developed and is forecasted to score significant growth by 2032. The report provides a complete picture of the market situation, dynamics, risks, current issues and prospects. You will find more than 230 pages of valuable information in this unique, in-depth analysis and will receive an overview of how the different EU support measures and the military conflict in Ukraine will impact this market.
Market Trends, Drivers, Constraints, and Opportunities:
• The corporate renewable PPA market in Europe will emerge between 2023 and 2032 due to the competitive turn-key cost of solar and wind energy and the recognition of the corporate PPAs by the European Commission (EC) as a key instrument to fight against surging energy prices.
• Corporate PPA market performance in Europe shall be weaker in 2022 in comparison to 2021. Renewable Market Watch™ estimates that corporate PPA prices in Europe in 2022 (YTD) have increased by over 50 per cent annually due to the unstable geopolitical situation and surging energy and commodity prices. Still, demand for corporate PPAs remains high despite all the challenges related to the fast requirements of the EU for energy independence from Russia and carbon neutrality.
• More European countries have made long-term plans to expand their renewable energy capacity by significant numbers by 2030, supporting the continent's leading position in the global corporate PPA market.
• Germany is the European renewable energy leader but has a modest share of the corporate PPA market. However, after the launching of the NordLink interconnector between Germany and Norway in May 2021, a positive effect is expected for the German corporate PPA market in the following years.
• Grid connection restrictions due to congestion and especially market integration challenges may sometimes hamper the future of corporate PPA renewable energy projects deployment.
Industry analysts of Renewable Market Watch™ used a complex array of research sources to understand better the role of corporate renewable PPAs and their application in European countries under different local regulations. Through extensive research and discussions with experts in the industry, Renewable Market Watch™ has identified a series of market trends that will impact investment volume and renewable energy capacity additions under corporate renewable PPA models by 2032 in Europe. Corporate renewable PPAs will support reducing carbon emissions and contribute to constructing new renewable energy projects. e.g., the RE100, made up of many of the world's most influential companies, have all committed to 100% renewable energy, e.g. Google, MARS, Microsoft, Nestle.
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