Corporate renewable power purchase agreements (PPAs) are on the rise around the world. Market research to date – albeit limited – seems to indicate that the core drivers for corporations to enter into long-term PPAs with producers of renewable energy are not so much the green footprint they leave, but are rather economic considerations.
Corporates enter into PPAs mainly to hedge the power price risk – the green aspect is largely viewed as an add-on benefit.
So what about the Nordic region – this northernmost, environmentally progressive and economic power-house corner of Europe?
Is it a new frontier in the context of renewable corporate PPAs?
The article was published in Project Finance International EMEA Report, September 2016.