Consulting firm BloombergNEF and the Global Wind Energy Council have released a new report analysing corporate power purchase agreements (PPAs) in the first half of 2020.
According to the report, global corporate PPAs reached 8.9GW between January and July of this year.
Although activity is currently marching ahead of 2019, a big second half will be required in order for the market to hit record volumes by year-end.
More than in previous years, deals will have to be globally spread for a new record to be established in 2020.
The world’s largest corporate PPA market – the US – has seen activity drop significantly partially due to the pandemic.
For instance, Texas which had 5.5GW of PPAs in 2019 saw 940MW of PPAs during the first six months of 2020.
However, other regions managed to increase the number of corporate PPAs signed compared to previous years.
Latin America is positioned for a record year, due to firms in Argentina, Brazil and Chile choosing to purchase clean energy through the wholesale market, with 860MW deals announced in Brazil alone.
Europe has also had a promising start to the year, with PPAs totalling 1.4GW signed in nine different markets.
The Nordics, which typically dominate, saw just 400MW of PPAs announced in the first seven months. A warm, wet winter led power prices in the region to their weakest start in over a decade, curbing appetite from buyers.
Spain has emerged as the hottest procurement market in Europe, with the cheapest solar PPAs and the most competitive wind prices after the Nordics.
Southeast Asia is set to expand its corporate PPA market.
Malaysia just finished piloting a peer-to-peer energy trading programme, Singapore has a growing number of retail clean energy supply products and Vietnam is on the verge of piloting a direct PPA mechanism.
Read more about the analysis.