Power Purchase Agreement Market: $11.6 Billion In 2021, Estimated To Reach $18.4 Billion By 2031, Growing At 4.9% CAGR From 2022

The power purchase agreement (PPA) market was valued at $11.6 billion in 2021 and is projected to reach $18.4 billion by 2031. This represents a compound annual growth rate (CAGR) of 4.9% from 2022 to 2031. The growing adoption of PPAs is driven by the increasing demand for renewable energy, efforts to enhance energy security, and the need for cost-effective and predictable energy pricing.

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.

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.

𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐬𝐚𝐦𝐩𝐥𝐞 𝐫𝐞𝐩𝐨𝐫𝐭 𝐰𝐢𝐭𝐡 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬: www.alliedmarketresearch.com/request…ple/A47251

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.
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.

𝐁𝐮𝐲 𝐍𝐨𝐰 & 𝐆𝐞𝐭 𝐄𝐱𝐜𝐥𝐮𝐬𝐢𝐯𝐞 𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭 𝐎𝐧 𝐓𝐡𝐢𝐬 𝐑𝐞𝐩𝐨𝐫𝐭: www.alliedmarketresearch.com/checkou…cf48bd7297

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.

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.

𝐈𝐟 𝐲𝐨𝐮 𝐡𝐚𝐯𝐞 𝐚𝐧𝐲 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬, 𝐏𝐥𝐞𝐚𝐬𝐞 𝐟𝐞𝐞𝐥 𝐟𝐫𝐞𝐞 𝐭𝐨 𝐜𝐨𝐧𝐭𝐚𝐜𝐭 𝐨𝐮𝐫 𝐚𝐧𝐚𝐥𝐲𝐬𝐭 𝐚𝐭: www.alliedmarketresearch.com/connect…yst/A47251

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

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 the market share of 31.8% in 2021 in terms of revenue.

𝐊𝐞𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐏𝐥𝐚𝐲𝐞𝐫𝐬:

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

𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐔𝐬:

David Correa
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𝐀𝐛𝐨𝐮𝐭 𝐔𝐬:

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