Large global corporate groups continue to buy stakes in major renewable energy projects and sign power purchase agreements (PPAs) designed to provide long-term electricity for their operations. Some governments, notably India, are using PPAs to move away from coal-fired power generation and help local distribution companies, or discoms, use more renewable energy to serve residential and business customers.
The trend toward PPAs is helping support financing of renewable energy projects and is being used to promote sustainability, with corporate customers signing deals to take power from onshore and offshore wind, as well as solar, geothermal, and other installations. In many cases, companies wanting to secure power from renewable energy projects are recognizing they can join with other corporate entities to purchase power, enabling lower levels of investment (and sometimes a better negotiating stance) in a total project.
