AMSTERDAM – Companies have procured a record-breaking 7.8GW of new corporate renewable power purchase agreements (PPA) in the Europe in 2023, beating the previous 7.6GW record set in 2021 with two months still to go in the year.
The data has been released by PPA industry group the RE-Source Platform in order to mark its 2023 gathering in Amsterdam, which is bringing together 1,300 corporate renewable PPA energy buyers and sellers from across Europe.
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Energy Monitor is an intelligence partner to the RE-Source Platform, and contributing to news and analysis released throughout the event.
Sectors leading the way in the European PPA market are IT (with 2GW of procurement this year), heavy industry (1.8GW) and telecoms (650MW), which are collectively responsible for signing over 60% of corporate renewable PPAs.
Other sectors including retail, transport and automotive industries are also becoming increasingly large players in the corporate PPA market, says the RE-Source Platform.
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“We are delighted to welcome more than 350 energy buyers to this year’s event and to see that more companies than ever want to secure their energy through renewable contracts,” said Annie Scanlan, policy and impact director at the RE-Source Platform, in a statement.
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By GlobalDataScanlan added, however, that work needs to be done to scale up the corporate PPA market to allow companies to meet their decarbonisation goals and contribute to the EU meeting its goal of 45% renewable energy by 2030.
“The only thing holding us back from bringing renewables to all businesses is the existing regulatory barriers and the EU legislative uncertainty,” she said. “To unlock the full potential of PPAs we need to see the Renewable Energy Directive implemented, and we need the Electricity Market Design revision passed swiftly and sensibly.”
The RE-Source Platform is using its annual gathering to call on EU policymakers to use the EU’s Electricity Market Design to remove remaining regulatory barriers to corporate renewable PPAs, and to deliver the regulatory certainty needed to support European businesses’ net-zero goals.
According to the group, the remaining challenges include permitting delays for new wind and solar farms; ensuring access for renewable projects to the grid; and a stable, investor-friendly environment.
The group is also asking for support to manage price risk, as well as educational support to demystify PPAs and educate procurement staff in companies.
