This post was originally featured in our recently published Q2 Renewables Market Report – a comprehensive assessment of current power purchase agreement (PPA) pricing developments, policy updates, insights on PPA evaluation, and trends shaping the global renewable energy market. Download a copy of the full report.
Corporate PPA commitments in Europe have been rapidly growing, with deals signed in the EU in the first half of 2021 reaching a total capacity of more than 3.7 GW. For comparison, in all of 2020, the total capacity signed to corporate PPAs exceeded 7 GW. At this pace, signed capacity in the European market is projected to break the record set in 2020, which is especially impressive as 2020’s corporate procurement was bolstered by TotalEnergies’ 3,000 MW PPA.
Source: Altenex Energy and BlombergNEF, Q2 2021
Manufacturers in the European market have signed a greater portion of renewables agreements compared to their North American counterparts. Companies such as Air Liquide, Borealis, and Kemira signed their first agreements in 2020 and added additional contracts this year. BASF signed over 750 MW from a Dutch wind project while Sidenor added a PPA for over 300 MW in Spain, split between solar and wind.
The universe of technology companies contracting PPAs in Europe further expanded in Q2, with the announcement of Russian search engine Yandex’s PPA with Ilmatar Energy. The PPA for wind energy was reportedly signed for five years and will help Yandex to cover 100% of the energy needs for the data center in Mäntsälä, Finland. While Yandex is making its first steps in the European PPA world, Amazon continues to lead the energy transformation by signing, in total, more than 1,300 MW in corporate PPA deals in the Netherlands, UK, Sweden, and Spain in just the past six months.
We expect the corporate demand for sourcing renewable energy to continue to grow in 2021 hitting record highs, not only in Europe but globally. This type of deal already proved itself an efficient tool for achieving companies’ sustainability goals and reducing energy costs.
To learn more on how to purchase renewables in Europe, attend RE-Source 2021 with us – an annual conference that brings together corporate buyers and renewable energy suppliers to discuss the existing challenges, work out their solutions and share experiences. The event will take place on October 14-15 in Amsterdam. More information is available here.