Five PPA myths: The truth about corporate renewable energy procurement

Pasquale Roselli | Source: Renewable Energy World | Posted 05/30/2025

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As demand for clean energy reaches record highs, power purchase agreements (PPAs) have become a cornerstone of corporate sustainability strategies. According to BloombergNEF, 2024 set a record with 28 gigawatts (GW) of corporate power purchase agreements (PPAs) in the U.S., representing a 34% increase from 2022.

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Power purchase agreements (PPAs) have become essential for corporate sustainability as demand for clean energy surges, with a record 28 gigawatts of agreements in the U.S. in 2024. These contracts allow companies to purchase renewable energy directly, helping them stabilize energy costs and achieve sustainability targets. Despite their growing importance, several myths about PPAs persist, hindering progress in corporate decarbonization efforts.

Five common misconceptions include the belief that sustainability benefits only come from new projects, that PPAs require long-term commitments, and that they are overly complex. In reality, existing renewable assets can provide significant benefits, shorter terms are available, and the financial modeling of PPAs can be simplified with expert guidance. Additionally, PPAs create tangible community impacts and can offer financial protection against market volatility, making them a strategic choice for companies aiming to meet their 2030 climate goals.

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Source Link: https://www.renewableenergyworld.com/energy-business/energy-finance/five-ppa-myths-the-truth-about-corporate-renewable-energy-procurement/

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Five PPA myths: The truth about corporate renewable energy procurement

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