Solar and wind PPAs entered like never before

Power purchase agreements on 13.4 GW of renewable energy project were entered in 2018. The Nordic region has adopted the financing model, but Europe still lags behind other regions, particularly the US.

Photo: Vestas

How should the expansion of renewable energy projects be financed around the world in step with global state subsidies disappearing? Power purchase agreements (PPAs) are increasingly being offered as an answer to this question. The model, which secures cheap electricity and allows companies to insert a green boy scout badge in their corporate social responsibility pamphlets. Furthermore, project developers are able to present PPAs to lenders as credit security.

A new review from Bloomberg NEF shows that 2018 saw PPA agreements for 13.4 GW of renewable energy projects. That is far more than a doubling from the previous year, when 6.1 GW were secured through such contracts.

Read the whole article

Get 14 days free access.

No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from EnergyWatch

Further reading

Related articles

Latest News

See all jobs