PPA is the foundation document for most power projects and a fundamental instrument to facilitate the sale and purchase of electrical power. The power purchase agreement is another step towards the sustainability arrangement under which a company enters a long-term contract with an independent power producer or a utility and commits to purchasing a specific amount of renewable electricity or the output from a specific asset (sleeved or virtual), at an agreed price.
The power purchase agreement is also called a “Green Power Purchase Agreement” (Green PPAs). The power purchase agreements operate over the medium or long term (5 to 20 years). In the agreement, the developer sells the power generated to the host customer at a fixed rate which is typically lower than the local utility’s retail rate. Several benefits are associated with PPA such as a fixed long-term rate and guarantees of origin of renewable assets. All regions are engaged in the development of power-saving solutions that can help to lower the global footprints and cost saving on power consumption. The adoption of green energy is increasing in Asia and Australia which is creating a power purchase agreement market opportunity.
Get a PDF brochure for Industrial Insights and Business Intelligence @ https://www.alliedmarketresearch.com/request-sample/47725
Lower power prices encourage customers to sign PPAs and make fewer purchases of electricity from utilities which are boosting the power purchase agreement market share in the energy industry. PPA ensures developer to receives income from the sales of electricity as well as any tax credits and other incentives generated from the system which is uplifting the power purchase agreement market size in the forecasted period. At the end of the PPA contract term, a customer may be able to extend the PPA or choose to buy the solar energy system from the developer.
Large corporates are entering into PPA to buy electricity from renewable energy projects located near their premises (on-site projects) and sometimes remote from their location (off-site). As per the power purchase agreement market forecast, corporates are entering PPA to promote energy conservation and energy efficiency which help the business to complete the sustainability policies. In all regions, the consumption of green energy is increasing at a high rate which fosters the power purchase agreement market growth. The implementation of the proposed programs to build an energy-efficient corporate building will help to boost the power purchase agreement market trend in near future.
The power purchase agreement market is segmented into type, end-use, and region. On the basis of type, the market is classified into physical PPA, portfolio PPA, block delivery PPA, and others. On the basis of application, the market is segmented into solar, wind, geothermal, hydro, and other. On the basis of end users, the market is segmented into merchant, corporate and residential. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Enquiry Before Buying: https://www.alliedmarketresearch.com/purchase-enquiry/47725
On the basis of type, the physical PPA segment holds a 59.5% share in terms of revenue, and the solar energy segment is expected to grow at the highest CAGR of 5.0% during the forecast period. The physical PPA comes with high flexibility as customers can purchase a large volume of electricity through a single transaction due to which the adoption of physical PPA type is increasing in the power purchase agreement market.
On the basis of application, the wind segment holds a 39.9% share in terms of revenue and is expected to grow at a CAGR of 4.8% during the forecast period. Along with this, the solar segment holds the highest CAGR of 5.1% during the forecast period as several cost benefits are associated with solar panels and solar energy storage.
On the basis of end-use, the corporate segment holds a 57.0% share in terms of revenue and is expected to grow at a CAGR of 5.1% during the forecast period. Corporations are entering into both kinds of PPA due to which corporations are dominating the market.
On the basis of region, the Europe region held a 47.8% share in terms of revenue and is anticipated to grow at a CAGR of 4.8% during the forecast period. Future developments in Spain’s solar storage industry are projected to drive the growth of the power purchase agreement market in the country. North America holds the highest CAGR of 5.3% in the forecasted period
Get a Customized Research Report @ https://www.alliedmarketresearch.com/request-for-customization/47725
The power purchase agreement market analysis covers in-depth information on the major industry participants. Some of the major players in the power purchase agreement market include Schneider Electric, RWE, ENGIE, Statkraft AG Group, Enel Spa, Siemens, and Ameresco. Other players in the Power purchase agreement market are General Electric, Shell, Renewable Energy Systems Ltd., Ecohz, and others
Key findings of the study
- On the basis of type, the physical PPA segment holds the market share of 59.5% in 2021 in terms of revenue
- On the basis of application, the wind segment holds the market share of 39.9% in 2021 in terms of revenue
- On the basis of end-use, the corporate segment gained a 57.0% share in 2021 in terms of revenue.
- On the basis of region, the North American region holds a market share of 31.8% in 2021 in terms of revenue.
About Us
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domains.
Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms the utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of the domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
Contact:
David Correa
5933 NE Win Sivers Drive
#205, Portland, OR 97220
United States
USA/Canada (Toll-Free):
+1-800-792-5285, +1-503-894-6022
UK: +44-845-528-1300
Hong Kong: +852-301-84916
India (Pune): +91-20-66346060
Fax: +1(855)550-5975
help@alliedmarketresearch.com
Web: www.alliedmarketresearch.com
Allied Market Research Blog: https://blog.alliedmarketresearch.com