BNEF Brief: Corporate PPA Market Set to Reach New Heights

The video discusses the increasing trend of clean energy purchases, particularly through Power Purchase Agreements (PPAs), which allow companies to lock into long-term contracts with solar or wind developers. This helps hedge against electricity market volatility. However, accessing PPAs can be challenging in certain regions like Japan and China. Major tech companies like Google and Microsoft are leading buyers, but there is growing industry diversity with companies from various sectors, including Exxon Mobil, also investing in clean energy.

What is the main mechanism companies are using to purchase clean energy?

• Carbon Offsetting

• Power Purchase Agreements

• Renewable Energy Certificates

• Green Bonds

How long do companies typically lock into contracts with solar or wind developers under PPAs?

• 10 to 20 years

• 1 to 5 years

• 5 to 10 years

• 20 to 30 years

What is one benefit for companies entering into a PPA?

• Increased energy consumption

• Access to government subsidies

• Hedging against electricity market volatility

• Immediate cost savings

Which markets face challenges in accessing PPAs?

• United States and Canada

• Europe and Australia

• Japan and China

• India and Brazil

Which industries in the US are now engaging in PPAs besides tech companies?

• Healthcare and Pharmaceuticals

• Food and Beverage, Consumer Staples

• Automotive and Aerospace

• Retail and Fashion