Power Purchase Agreement Market By Type (Physical PPA, Portfolio PPA, Block Delivery PPA, Others), By Application (Wind, Solar, Hydro, Geothermal, Others), By End Use (Corporate, Merchant, Residential): Global Opportunity Analysis and Industry Forecast, 2021-2031
The global power purchase agreement market was valued at $11.6 billion in 2021, and is projected to reach $18.4 billion by 2031, growing at a CAGR of 4.9% from 2022 to 2031.
Power purchase agreement (PPA) is a long-term contract under which a business agrees to purchase electricity directly from a renewable energy generator. Power purchase agreement provide financial certainty to customer and the project developer. PPA removes a significant roadblock to building for new renewable facilities. PPA allows the customer to receive stable and often low-cost electricity with no upfront cost, while also enabling the owner of the system to take advantage of tax credits and receive income from the sale of electricity.
Different PPA have different terms and conditions such as in physical on-site power generation solutions are installed directly on the company’s property, be it on rooftops, parking carports or ground mounted. The electricity is then consumed on site. In physical off-site PPA, renewable energy producer is a electricity supplier and the renewable facility is not a customer’s immediate. Renewable facility distributes the power to customers in small proportion.Varied PPA have different terms and conditions, for example, physical on-site power generation solutions are put on the company's land, whether it be on roofs, in parking garages, or mounted on the ground. After then, the electricity is used on site. In a physical off-site PPA, the renewable energy producer serves as an electrical supplier rather than the customer. Small amounts of electricity are distributed to customers using grids.
As per the global power purchase agreement market analysis, increase in global warming and changes in climatic conditions are projected to lead to faster adoption of PPA in corporate segment in the coming years. The awareness related to the clean energy is increasing in the developing nations which boosts the demand for power purchase agreement during the forecast period. The consumption rate of clean energy is accelerating in developing nations which is contributing toward the increase in power purchase agreement market share. Globally, there is an increase in the adoption rate of power purchase agreement due to various factors such as surge in demand for electricity or power, depletion of fossil fuel resources, and surge in environmental pollution. PPA helps to overcome the concerns which are related to pollution reduction, sustainability, and renewability of resources which is projected to showcase positive impact on power purchase agreement market trends in near future.
For the purpose of analysis, the power purchase agreement market is segmented on the basis of type, application, end-use and region. On the basis of by type, the market is classified into physical PPA, portfolio PPA, block delivery PPA and other. On the basis of application, the market is classified into wind, solar, hydro, geothermal and others. By end-use, the market is segmented into corporate, merchant and residential. On the basis of region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest share of the market, followed by Europe. Major players operating in the global Power purchase agreement industry include Schneider Electric, RWE, ENGIE, Statkraft AG Group, Enel Spa, Siemens, Ameresco.
Key Benefits For Stakeholders
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the power purchase agreement market analysis from 2021 to 2031 to identify the prevailing power purchase agreement market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the power purchase agreement market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global power purchase agreement market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Application
Wind
Solar
Hydro
Geothermal
Others
By End Use
Corporate
Merchant
Residential
By Type
Block Delivery PPA
Others
Physical PPA
Location
Off-Site PPA
◦ Type
On-Site PPA
Portfolio PPA
By Region
North America
U.S.
Canada
Mexico
Europe
Spain
Sweden
Norway
UK
Germany
Rest of Asia-Pacific
Asia-Pacific
China
India
South Korea
Japan
Rest of Asia-Pacific
LAMEA
Saudi Arabia
Brazil
UAE
Rest of LAMEA
Key Market Players
General Electric
Siemens AG
statkraft
Ameresco Inc.
Enel S.p.A.
ecohz
RES Group
Schneider Electric
Shell Plc.
RWE AG
Engie
Please Note: It will take 7-10 business days to complete the report upon order confirmation.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook