Corporates in the European Union (EU) have signed up for a record 7.8 GW of renewable energy capacity YtD, under power purchase agreements (PPA), led by the ICT sector. The latter alone has secured a total of 2 GW, according to RE-Source, the European platform for renewable energy sourcing.
The list is getting diversified with heavy industry players having contracted 1.8 GW, followed by telecom sector's 650 MW. The 3 industries together account for over 60% of corporate renewable energy PPAs, according to RE-Source.
The cumulative contracted capacity now stands at 32.8 GW, with Spain accounting for 23% share. Sweden and Germany both take 13% share, while the UK and Norway each represent 8% share. Solar energy scores over wind, wind and solar and other renewables.
According to the platform, at its recent event in Amsterdam, more than 350 energy buyers showed interest in clean energy procurement, which it says shows the growing need for companies to secure their energy through such contracts.
However, the industry demands more barriers to its smooth operation to be removed.
"The only thing holding us back from bringing renewables to all businesses is the existing regulatory barriers and the EU legislative certainty," said RE-Source Policy & Impact Director Annie Scanlan. "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. This way, even more companies will see PPAs as a viable option to source competitively priced green electricity."
Specifically, RE-Source says corporate energy buyers are calling for reliable grid access and faster permitting for new wind and solar farms with a stable, investor-friendly environment. They also want support to manage price risk to enhance bankability and educate procurement staff in companies with a view to demystifying PPAs.