RE-Source 2023 | Industry urges removal of barriers despite renewable PPA record
Corporate PPAs reach 7.8GW in year to date, led by IT, heavy industry and telecoms, RE-Source Platform says at start of annual event
Renewable power purchase agreements (PPAs) have reached a record this year so far, but corporate energy buyers are calling on policymakers to use the EU’s reform of its electricity market design (EMD) to remove remaining barriers.
The renewable corporate PPA market this year to date has reached a record of 7.8GW, comparing very favourably to the January-October volume last year of 3.4GW, said the European platform for corporate renewable energy sourcing, or RE-Source.
Companies in information and communications technology (ICT), heavy industry and telecoms were responsible for signing over 60% of those PPAs, while other sectors like retail, transport, or car-making are also playing an increasingly important role.
“The only thing holding us back from bringing renewables to all businesses is the existing regulatory barriers and the EU legislative certainty,” said Annie Scanlan, policy and impact director at the RE-Source Platform.
“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.”
RE-Source has published the annual figure at the kick-off of its annual event starting today in Amsterdam, which counts on over 1,300 registrations and more than 350 energy buyers as participants. This year’s event has a particularly strong representation of the manufacturing, chemicals, and automotive industries, the organisers said.
Europe-wide industry lobbies WindEurope and SolarPower Europe are co-founders of RE-Source.
For a continued growth in the PPA market, corporate energy buyers are according to RE-Source calling for:
- More renewables: Reliable grid access; and faster permitting for new wind and solar farms. A stable, investor-friendly environment and full implementation of all EU legislation is critical.
- Reduced risk: Support to manage price risk and prove bankability.
- Education: Support to demystify PPAs and educate procurement staff in companies.
This will be key for the EU to reach a 45% renewables share in energy by 2030 as it has targeted, says RE-Source, stressing that PPAs will play a key role in adding more wind and solar capacity to the grid.
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