October 13, 2020 Read More →

Australia’s corporate renewable energy demand already at record 3,500MW in 2020

Renew Economy:

Australian companies continue to turn to wind and solar to cut their energy costs, with the market for corporate power purchase agreements (PPA) setting new records in 2020, according to consultancy Energetics.

Energetics has been tracking Australia’s corporate PPA market since 2016, and while the market had been relatively subdued in 2019, it has enjoyed a staggering recovery, setting a new record with almost 3,500MW of new wind and solar projects securing corporate PPAs so far in 2020.

This is a huge jump from around 700MW of corporate PPAs signed in 2019, which had been a much slower year following a strong 2018, as the market hit headwinds caused by grid connection difficulties for new projects and policy uncertainty contributed to sluggish investment.

Corporate PPAs have emerged as an effective way for corporations to manage their electricity costs, by entering into off-take agreements directly with wind and solar projects, taking advantage of lower wholesale electricity prices. It’s also been a saviour for the wind and solar industry.

According to the Energetics tracker, almost 7,500MW of electricity generation capacity has secured corporate off-take agreements since 2016, with more than four-fifths of this capacity being sourced from wind and solar projects.

The strong uptake of corporate renewable PPAs throughout 2020 saw records broken for both the amount of new capacity secured under off-take contracts, as well as the total amount of deliverable electricity generation contracted. In 2020, around 2,200GWh of wind and solar supplies were secured under corporate PPAs, beating the previous record set in 2017, which was just below 2,000 GWh.

[Michael Mazengarb]

More: Australian corporate wind and solar purchases hit new highs in 2020

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