Corporate power purchase agreements (PPAs) for clean energy reached an all-time high of 31.1 GW in 2021 as corporations announced new sustainability pledges while costs for renewables are falling, a new report by BloombergNEF (BNEF) shows.
The total volume has grown by almost 24% from 2020, which was also a record year with 25.1 GW of announced deals. According to BNEF’s latest report, more than 137 corporations in 32 countries contributed to the new record, with roughly 65% of all PPAs being signed by US corporate players. Large technology companies were a major driver for the growth in activity by signing more than half of the deals.
“It is no longer a matter of whether corporate clean energy procurement will grow each year, it’s a matter of how much,” said Kyle Harrison, head of Sustainability Research at BNEF.
With PPAs for 20.3 GW, the Americas were responsible for two-thirds of the total corporate procurement activity in 2021. The US headed the list with deals for 17 GW, of which virtual PPAs account for 12 GW. A total of 8.7 GW of deals were registered in the European market, where Spain and the Nordics were the most attractive. Meanwhile, only 2 GW of capacity was contracted through PPAs in Asia.
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