Renewable Energy Surge Drives Record Growth in Power Purchase Agreement Market

PPA is the foundation document for most power projects and a fundamental instrument to facilitate the sale and purchase of electrical power. The power purchase agreement is another step towards the sustainability arrangement under which a company enters a long-term contract with an independent power producer or a utility and commits to purchasing a specific amount of renewable electricity or the output from a specific asset (sleeved or virtual), at an agreed price. The power purchase agreement market was valued at $11.6 billion in 2021, and is estimated to reach $18.4 billion by 2031, growing at a CAGR of 4.9% from 2022 to 2031.

𝐑𝐞𝐪𝐮𝐞𝐬𝐭 𝐟𝐨𝐫 𝐒𝐚𝐦𝐩𝐥𝐞 𝐏𝐃𝐅: https://www.alliedmarketresearch.com/request-sample/47725

Power purchase agreement is also called as "Green Power Purchase Agreements" (Green PPAs). The power purchase agreements operate over the medium or long term (5 to 20 years). In the agreement, the developer sells the power generated to the host customer at a fixed rate which is typically lower than the local utility's retail rate. Several benefits are associated with PPA such as a fixed long-term rate and guarantees of origin of renewable assets. All regions are engaged in the development of the power sabing solutions which can help to lower the global footprints and cost saving on power consumptions. The adoption of green energy is increasing in Asia, and Australia which is creating power purchase agreement market opportunity.

Lower power prices encourage customers to sign PPAs and make fewer purchases of electricity from utilities which is boosting the power purchase agreement market share in the energy industry. PPA ensure developer to receives the income from the sales of electricity as well as any tax credits and other incentives generated from the system which is uplifting the power purchase agreement market size in forecasted period. At the end of the PPA contract term, a customer may be able to extend the PPA or choose to buy the solar energy system from the developer.

𝐑𝐞𝐩𝐨𝐫𝐭 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰: https://www.alliedmarketresearch.com/power-purchase-agreement-market-A47251

Large corporates are entering into PPA to buy electricity from renewable energy projects located near to their premises (on-site projects) and sometime remote from their location (off-site). As per power purchase agreement market forecast, corporates are entering to PPA to promote energy conservation and energy efficiency which help the business to complete the sustainability policies. In all regions, the consumption of green energy is increasing on high rate which foster the power purchase agreement market growth. With implementation of the proposed programs to build a energy efficient corporate building will help to boost the power purchase agreement market trend in near future.

𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬:

The Power Purchase Agreement industry's key market players adopt various strategies such as product launch, product development, collaboration, partnership, and agreements to influence the market. It includes details about the key players in the market's strengths, product portfolio, market size and share analysis, operational results, and market positioning.

𝐒𝐨𝐦𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐦𝐚𝐣𝐨𝐫 𝐤𝐞𝐲 𝐩𝐥𝐚𝐲𝐞𝐫𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐠𝐥𝐨𝐛𝐚𝐥 𝐏𝐨𝐰𝐞𝐫 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭 𝐌𝐚𝐫𝐤𝐞𝐭 𝐢𝐧𝐜𝐥𝐮𝐝𝐞,

RES Group
Enel S.p.A.
Schneider Electric
RWE AG
Shell Plc.
statkraft
Ameresco Inc.
Engie
Siemens AG
ecohz
General Electric

The power purchase agreement market is segmented into type, end use, and region. On the basis of type, the market is classified into physical PPA, portfolio PPA, block delivery PPA and other. On the basis of application, the market is segmented into solar, wind, geothermal, hydro and other. On the basis of end use, the market is segmented into merchant, corporate and residential. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

𝐏𝐫𝐞𝐬𝐬 𝐑𝐞𝐥𝐞𝐚𝐬𝐞: https://www.alliedmarketresearch.com/press-release/power-purchase-agreement-market.html

On the basis of type, the physical PPA segment hold 59.5% share in terms of revenue and the solar energy segment is expected to grow at the highest CAGR of 5.0% during the forecast period. The physical PPA comes with high flexibility as customer can purchase a large volume of electricity through a single transaction due to which the adoption of physical PPA type is increasing in the power purchase agreement market.

On the basis of application, the wind segment holds 39.9% share in terms of revenue and is expected to grow at a CAGR of 4.8% during the forecast period. Along with this, the solar segment holds the highest CAGR of 5.1% during the forecast period as several cost benefits are associated with the solar panels and solar energy storage.

On the basis of end-use, the corporate segment holds 57.0% share in terms of revenue and is expected to grow at a CAGR of 5.1% during the forecast period. Corporates are entering into both kind of PPA due to which corporate is dominating the market.

On the basis of region, the Europe region held 47.8% share in terms of revenue and is anticipated to grow at a CAGR of 4.8% during the forecast period. Future developments in Spain solar storage industry are projected to drive the growth of the power purchase agreement market in the country. North America holds the highest CAGR of 5.3% in the forecasted period

𝐈𝐧𝐪𝐮𝐢𝐫𝐲 𝐛𝐞𝐟𝐨𝐫𝐞 𝐁𝐮𝐲𝐢𝐧𝐠: https://www.alliedmarketresearch.com/purchase-enquiry/47725

𝐊𝐞𝐲 𝐟𝐢𝐧𝐝𝐢𝐧𝐠𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐬𝐭𝐮𝐝𝐲:

- On the basis of type, physical PPA segment holds the market share of 59.5% in 2021 in terms of revenue
- On the basis of application, wind segment holds the market share of 39.9% in 2021 in terms of revenue
- On the basis of end-use, the corporate segment gained 57.0% share in 2021 in terms of revenue.
- On the basis of region, the North America region hold a market share of 31.8% in 2021 in terms of revenue.

𝐓𝐫𝐞𝐧𝐝𝐢𝐧𝐠 𝐑𝐞𝐩𝐨𝐫𝐭𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐄𝐧𝐞𝐫𝐠𝐲 𝐚𝐧𝐝 𝐏𝐨𝐰𝐞𝐫 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲:

𝟏. 𝐑𝐞𝐧𝐞𝐰𝐚𝐛𝐥𝐞 𝐄𝐧𝐞𝐫𝐠𝐲 𝐂𝐞𝐫𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐞 𝐌𝐚𝐫𝐤𝐞𝐭 - https://www.prnewswire.com/news-releases/renewable-energy-certificate-market-to-reach-103-2-bn-globally-by-2030-at-27-2-cagr-allied-market-research-301412706.html

𝟐. 𝐔𝐭𝐢𝐥𝐢𝐭𝐲 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐌𝐚𝐫𝐤𝐞𝐭 - https://www.prnewswire.com/news-releases/utility-communications-market-to-garner-37-0-billion-globally-by-2032-at-5-7-cagr-allied-market-research-301893652.html

𝐀𝐛𝐨𝐮𝐭 𝐔𝐬:

Allied Market Research is a top provider of market intelligence that offers reports from leading technology publishers. Our in-depth market assessments in our research reports take into account significant technological advancements in the sector. In addition to other areas of expertise, AMR focuses on the analysis of high-tech systems and advanced production systems. We have a team of experts who compile thorough research reports and actively advise leading businesses to enhance their current procedures. Our experts have a wealth of knowledge on the topics they cover. Also, they use a variety of tools and techniques when gathering and analyzing data, including patented data sources.

𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐔𝐬:

United States
1209 Orange Street,
Corporation Trust Center,
Wilmington, New Castle,
Delaware 19801 USA.
Int'l: +1-503-894-6022
Toll Free: +1-800-792-5285
Fax: +1-800-792-5285
help@alliedmarketresearch.com

This release was published on openPR.