I was very interested in this stat/headline from RE-Source pointing out that the trajectory for signing up corporate PPAs is rocketing. I would back that up, judging by the number we have advised on in the last few months and the numbers we are being asked to advise on that will likely be signed later this year. These have included as clients and counterparties tech companies, supermarkets, local/public authorities and industry, for onshore and offshore wind, solar and other renewables. It should not come as a surprise, especially in the UK, which has pioneered some of these deals and structures over the years. We were delighted to act on what we think has been the largest UK corporate PPA put in place to date at the beginning of the year. The concepts and the structures are becoming more sophisticated with additional balancing agents etc. being brought into the mix, so I generally disagree with those that say that there is standard documentation. In the UK we have a team that has been advising on these for over a decade with many of the much publicised ones under our belts and the team would say each one has different issues. That said we can point our clients who are thinking of them for the first time, to some of the key issues to iron out in heads of terms to avoid protracted discussions later.
It would be remiss not to say that hand in hand with increased corporate PPAs, we are seeing more and more private wire projects and there is no doubt that the UKs Net Zero commitment is pushing this. Energy resilience and particularly renewable energy sourcing from on or near-site has really focused the minds of many businesses.
Corporate PPAs signed surpasses 2019 total, and it’s only May!
https://resource-platform.eu/news/corporate-ppas-signed-surpasses-2019-total-and-its-only-may/