Chart of the week | Corporate PPAs: please form an orderly queue

With the promise of long-term fixed price agreements with creditworthy consumers, corporate power purchase agreements (CPPAs) have become one of the most talked about routes to market for new subsidy-free generators. CPPAs provide for the sale of electricity from a developer to a final consumer typically using a supplier to interface with market trading rules. Many large consumers are interested in them as a way of decarbonising their power supplies and in aiding budget certainty.

Recent announcements from developers such as Lightsource and EnergieKontor show that subsidy-free CPPAs can be delivered, but the scale of this model on a market-wide level is still being evaluated. This week’s Chart of the Week shines a light on this potential for increasing CPPA uptake by looking at the demand and supply balance.

James Brabben

James Brabben

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