Artificial Intelligence
Net Additional Renewable Energy Capacity under PPA to Reach 106GW in 2027 as Enterprises Seek Sustainable Energy and Stable Costs
NEW YORK, Aug. 24, 2023 /PRNewswire/ –Â Inflation affects energy prices across the market, so the need for proper energy procurement plans that stabilize the price over the long term is omnipresent for all enterprises and industries. There has been an increase in Power Purchase Agreements (PPAs) that enable enterprises to secure sustainable energy, meet green goals, and not be at the mercy of market prices. According to a new report from global technology intelligence firm ABI Research, additional renewable capacity under PPA contracts grew between 2018 and 2022 to 36.7 GW, a CAGR of 22% in Europe and 40% in North America. Net additional renewable energy capacity will reach 106 GW in 2027, a global CAGR of 24%.
“The increase in PPAs has allowed the customer base to expand, not just be long-term physical contracts near the enterprise. Contracts can now vary from long-term (10+ years) to short-term (