Are corporate Power Purchase Agreements (PPAs) the next big thing sweeping the global energy market? Renewable energy developers and customers certainly have reason to be optimistic. According to an article in Bloomberg New Energy Finance entitled, Companies buying green power – how big a trend?, creative and strategic solutions to corporate sustainability measures increasingly includes corporate PPAs as “energy-consciousness around the world will continue to grow.”
If strategic sustainability investments by name brand companies are a bellwether for the future, corporate PPAs may be here to stay. As the BNEF article notes, “In all, counting the first quarter of 2017, some 19GW of corporate PPAs have been signed worldwide so far, and among the companies most active in contracting to buy renewable electricity have been some of the biggest names of all.” As is always the case when it comes to energy trends, market forces will continue to produce new choices and alternatives that could impact how widely corporate PPAs are embraced.
While corporate PPAs enable companies to value and buy clean energy usually generated offsite, Metrus’ provides its customers with a similar vehicle, its ESA, to procure energy efficiency as-a-service. By harvesting energy and water savings on site that actually stem from the customer’s buildings and usage, ESAs have the added benefit of involving efficiency gains from existing facility operations. Corporate PPAs and ESAs can work in tandem to accelerate how quickly companies meet their sustainability targets.