European electricity markets are increasingly dominated by renewable energy, often deployed by project developers via power purchase agreements — typically a 10-15-year agreement for buyers to procure electricity directly from producers.
Corporate PPAs (cPPAs), in which a corporate entity is the buyer, are increasingly popular, which was demonstrated in robust resurgence in 2023.
This includes physical — also known as ‘sleeved’ — PPAs, where the renewable electricity is delivered via the grid, and virtual PPAs, which serve as financially settled contracts without electricity delivery.
So what’s the status of Europe’s corporate renewable PPA market?