Number of contracts for supply of energy from RES grows in EU

The renewable energy sources market attained full growth and became interesting to the investor community. The trend of growth of interest of major world companies to be provided with competitive, reliable and clean energy from renewable sources is more and more distinctly observed year by year. The companies reduce the risks connected with power supply on basis of fossil fuels in such a way. Even today, 100 leading companies of the world, among them industrial production leaders, are committed to purchase 100% of energy from renewable sources in the short-run. A special PPA (Power Purchase Agreement) is used for these purposes.

The chemical industry became one more player in the purchase of renewable energy. In 2017, the AkzoNobel Company, within the framework of commitment to neutralize carbon emissions by 2050, took the lead of consortium to purchase electric power from the Buldokken wind farm in the Netherlands.

Marco Mensink, the Director General of the Confederation of European Paper Industries (CEPI), takes up the position that the number of corporate renewable Power Purchase Agreements is approaching the level of contracts for energy from conventional energy sources.

Giles Dickson, Chief Executive Officer of the European Wind Energy Association WindEurope, comments on evolving trends, “Today, wind power generators can supply economic power due to a significant reduction of technical and operational costs (a constant annual decrease is observed at this point), but the confidence in stable income is also necessary in order to maintain positive trends. Corporate PPAs will play an increasingly active role in supplying the necessary energy to big business and a guarantee for energy suppliers. The price of such contractual agreements will be lower than the commercial retail price of electric power.”

An abrupt jump in the conclusion of renewable energy agreements is also noted by James Watson, CEO of SolarPower Europe energy company, “In 2016, 3 times more renewable Power Purchase Agreements were signed than in 2015. It is necessary to point out that 1.5 GW of energy from renewable sources were supplied to European corporations according to PPAs in 2016, while 4 years ago this figure was only 74 MW.”

On October 10-11, 2017 in Brussels an annual event dedicated to the stimulation of conclusions of PPAs on renewables will be held – RE-Source 2017. WindEurope and Solar Power Europe will be the organizers. The event will gather at-large energy consumers, including Google, a number of chemical companies, a wide list of industrialists from other branches, as well as representatives of “green” energy producers (Envision and Vestas, EDF Energies Nouvelles, Engie, Enel Green Power, etc.), where participants will also manage to negotiate with politicians regulating the energy sector. The main topics of the event will touch upon subjects of supporting the European economy using renewables.

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