/LONDON, January 29, 2024, 09:00 GMT, RENEWABLE MARKET WATCHTM/ The European corporate renewable PPA market has proliferated by an almost seven-fold increase from 2016 until 2023. 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. The European Institutions have agreed in 2023 on a revised text of the EU Renewable Energy Directive (RED III), which should help further speed up permitting for new and repowered renewable energy projects. Reducing permitting burdens shall contribute to corporate PPAs, which is 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 2024÷2033. Amazon, Google, Alcoa, Norsk Hydro, BASF, Bayer and Microsoft are among the key players in the market. This report provides further evidence that faster corporate PPA deployment would support transitioning to a European climate-neutral society and be beneficial economically.
The European corporate PPA market has grown to a cumulative capacity of over 40 GW between 2013 and 2024 (YTD), according to the Renewable Market Watch™. In 2023 alone, approximately 11 GW of corporate PPAs were contracted in Europe. Solar represented the majority of corporate PPA installations in 2023, including self-consumption projects, onsite PPAs, and near-site private wire PPAs. Wind represented Europe's most installed corporate renewable PPA capacity in 2021 and 2022. Spain is the European corporate renewable PPA market leader in the 2013 – 2023 top 10 ranks with over 24 per cent of the total capacity, followed by Sweden, Germany, the UK, Norway, Finland, France, the Netherlands, Ireland, Denmark, Poland and Italy.
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.
With the reduction of barriers to renewable projects, small and medium-sized companies will also turn to corporate energy sourcing. The corporate renewable PPAs shall be crucial in Europe's non-subsidised renewable energy market growth and green hydrogen generation by 2033. The Renewable Market Watch™ expects most European countries' governments to 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 2024 ÷ 2033. 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 2033. 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:
• Renewable Market Watch™ projects that the corporate renewable PPA market in Europe will emerge between 2024 and 2033 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 was stronger in 2023 than in 2022. In the first three quarters of the year, over 60% of corporate renewable PPA deals were contracted by companies in the ICT sector (6 GW), heavy industry (4.8 GW), telecoms (3.7 GW) and others (1.5 GW). Their respective capacities grew 22% to 11.3 GW, 25% to 9 GW and 35% to 2.5 GW.
• More European countries have made long-term plans to significantly expand their renewable energy capacity by 2030, supporting the continent's leading position in the global corporate PPA market.
• Germany is the European renewable energy leader but had a modest share of the corporate PPA market until 2021. However, after launching the NordLink interconnector between Germany and Norway in May 2021 and the passing out of a large number of renewable energy projects from the subsidies (EEG), there was a positive effect on the German corporate PPA market, which led to significant growth of the German corporate PPA capacity in 2022 and 2023.
• Grid connection restrictions due to congestion and especially market integration challenges may sometimes hamper the future deployment of corporate PPA renewable energy projects.
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 2033 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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