Global law firm Norton Rose Fulbright, together with EY has authored a report for the World Business Council for Sustainable Development (WBCSD) looking at Corporate Renewable Power Purchase Agreements (PPAs); created in collaboration with member companies of WBCSD’s Corporate Renewable PPA forum.
The ‘Corporate Renewable Power Purchase Agreements: Scaling up globally’ report illustrates the benefits of buying renewable power via PPAs for companies and developers alike. PPAs have become a popular tool for corporate buyers of any sector to effectively ensure economic and sustainable purchasing and the report provides guidance on key aspects of renewable PPAs.
More than 40% of Fortune 500 companies now have targets relating to renewable energy procurement, energy efficiency or cutting GHG emissions. This fast-growing number of companies is procuring power from renewable sources to reduce their carbon footprint and showcase leadership, as well as to mitigate energy procurement costs and risks.
The report walks companies through the opportunities that PPAs offer. It also addresses the obstacles corporate buyers and developers face as they plan and negotiate PPAs and proposes valuable solutions for corporate buyers and developers. The report takes a global approach highlighting countries that present the best potential for corporate renewables – such as Chile and Argentina or India.
Simon Currie, global head of energy, Norton Rose Fulbright, comments:
“The drive for sustainable supply chains encourages corporations to procure energy from sustainable sources on a global basis. Changing your energy procurement strategy is not a simple or overnight task. This guide provides practical insights for corporations so they can overcome the challenges and move towards a lower carbon future which doesn’t cost the earth.”
Maria Mendiluce, Managing Director for Climate & Energy at WBCSD, comments:
“In the many workshops and webinars we organized throughout 2016, corporate buyers spoke with developers, utilities, but also with financial and legal stakeholders to jointly find solutions as an industry. The report is an excellent source of information for companies considering PPAs as one option to buy renewable power.”
Norton Rose Fulbright is at the forefront of corporate PPA transactions having most recently advised Nestlé on its direct PPA for 50% of its UK demand. The firm’s global team continues to support key players on the upscaling of renewable energy procurement across multiple countries and regions. We believe that key markets for 2017 will include South Africa, Chile, Australia and Mexico.