RE-Source Platform launches new report ‘Risk mitigation for corporate renewable PPAs ‘
Corporate renewable electricity sourcing is geared up to play a key role in the energy transition towards a climate neutral economy. Corporate Power Purchase Agreements (PPAs) have become an essential tool for facilitating access to renewable energy. Although decarbonisation commitments often provide the initial motivation, corporates also seek to lower and fix their electricity costs by signing PPAs with renewable energy sellers.
Interested companies often lack experience in the field of energy procurement. Since PPAs are also a relatively new financial tool, there is a further lack of expertise in the particularities and logistics for those corporates. The new RE-Source Platform ‘Risk Mitigation Report for Corporate Renewable PPAs’ identifies different project-related risks and offers models for mitigation.
“Corporate PPAs are a win-win-situation for renewable energy buyers and sellers. By offering long term revenue stabilisation, PPAs allow developers to obtain financing to build wind energy projects and drive the energy transition. For clean energy buyers they offer cheap and stable pricing and competitive advantages in an increasingly carbon-free world. Our report aims to assist corporates on this path and show how other stakeholders like utilities, insurers and energy exchanges can support them”, says Guy Brindley, Senior Analyst Wind Energy Financing at WindEurope and the RE-Source Platform.
“The European Commission has set ambitious targets to decarbonise the European economy, improving the environment, industry, and society. Corporate Renewable Power Purchase Agreements (PPAs) are playing an important role in the transition to a cleaner economy by providing solar plant developers certainty on future revenues. The new RE-Source report on Risk Mitigation for Corporate Renewable PPAs will help corporates increase their awareness when considering long-term PPAs, providing them with tools and services to help advance solar power and renewables in Europe and beyond”, emphasizes Dr. Mercè Labordena, Senior Policy Advisor at SolarPower Europe and the RE-Source Platform.
The Re-Source Platform ‘Risk Mitigation Report’ will be updated on a regular basis. The latest version can be downloaded here: http://resource-platform.eu/riskmitigation
About the RE-Source Platform:
SolarPower Europe, WindEurope, RE100 (led by The Climate Group in partnership with CDP) and WBCSD established the RE-Source Platform to drive the uptake of PPAs, renewable energy investments and increase the number of corporates buying renewable power from 100 to 100,000. This is the first multi-stakeholder alliance in Europe bringing together the interests of clean energy investors, buyers and suppliers. This Platform pools resources and coordinates activities to promote a better framework for corporate renewable energy sourcing at EU and national level.