The Future of Renewable Energy: Renewable power generation, merchant risk and the growth of corporate PPAs

Acuris Studios is pleased to present a new report by Watson Farley & Williams on The Future of Renewable Energy: Renewable power generation, merchant risk and the growth of corporate PPAs.

Based on interviews with 150 senior level investors, financiers, developers and utilities based across Europe, South East Asia and the Middle East, this report provides insight into the renewable energy sector, identifying regional and global trends, alongside key issues that will shape the future of renewable energy.

Highlights from the report include:

• The race to invest in renewables is accelerating. Over two-thirds of surveyed developers expect to be involved in seven or more projects in the next two years, up from one-third who were involved in the same number of projects in the previous two years. Furthermore, 71% of investors expect to back four or more renewables projects over the next two years.
• Interest in corporate PPAs is booming, especially as subsidy support is being withdrawn. 63% of respondents in Europe and South East Asia agree that the low uptake in CPPAs is due to a lack of generators offering CPPAs that are suitable for SME offtakers. More than half (53%) cite alternative CPPA arrangements, including consortia and joint tenancy, as the most likely driver of CPPA growth. While 51% of respondents believe that a net reduction in carbon emissions is the most important benefit for offtakers in entering a CPPA.
• Energy Storage will play an important role in maintaining a resilient energy system. Nearly half of respondents based in Europe are already actively investing, developing or financing energy storage infrastructure, with nearly all respondents viewing this as a viable strategy for managing CPPA balancing risks.