The increasing prices of fossil fuel and electricity have improved the competitiveness of renewable energy power purchase agreements(PPA), as Asian-Pacific region is devoted to achieve the goal of decarbonization, currently the US consultancy Wood Mackenzie Company indicated in a research report.

 According to the forecast,the enterprises in the Asian-Pacific region are going to purchase a record 7GW of installed renewable energy capacity in 2022.As the renewable energy market recovers from the COVID-19 related disruptions, this figure increases 80% compared with 3.9GW in 2021.The increasing demand is mostly driven by efforts to achieve the goal of decarbonization in Asian-Pacific region, and the forces from market is in adjustment, which makes the PPA of renewable energy much more attractive.

The company deeply analysed the procurement situation of renewable energy in the Asian-Pacific region, and explored the growth potential of the future market.

What's driving the boom in corporate renewable energy purchases?

The price is becoming a more and more important part in the procurement. And the cost of generating electricity from renewables in 2022 is 46% lower than the average electricity price for industrial end-users.

What’s the corporate renewable energy PPA?

A corporate renewable energy PPA is a direct agreement that signed by a renewable energy developer and a corporate user.

What’s the usage of PPA?

Many companies are willing to sign the PPA because countries around the world are committed to achieving net zero emissions goals, so signing the PPA gives companies access to reliable clean energy power with no upfront costs, and the operator is responsible for operation and maintenance.

Who’s the main market participant?

Amp Energy, Ampluss Solar and Cleantech Solar are among the top three Indian PV system developers in the Asia Pacific corporate renewable Energy PPA market, but the vast majority of PV systems are installed domestically.

What is the potential for further growth?

Asia-pacific countries, including China, South Korea and Japan, are gradually relaxing their regulatory measures on companies signing off-site PPA, which should provide more opportunities in the coming years. But Wood Mackenzie expects Australia, India and Taiwan to continue to lead future growth.

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