European Renewable Energy Marketplace PPA

Landscape Across Europe

Supply

Demand

Supply chain constraints continue to impact projects

Shortages in material and labor will continue to disrupt production and transport due to the war in Ukraine, Covid lockdowns, and other factors. Re-shoring of manufacturing is planned but will come with time and cost implications.

Delayed and cumbersome permitting procedures limit project development

There continues to be a large pipeline of projects stuck in the queue. Despite recently passed permitting legislation, local impacts may lag.

Sunsetting of government subsidies and exit of RES projects from subsidies

Government subsidies will end or prove insufficient to meet goals and demand.

Strong corporate demand continues, with increasingly stringent

Targets

Concepts such as emissionality are taking center stage in energy procurement. RE100 guidance changed towards newer projects < 15 year limit load growth anticipated with increased electrification – EV, heat pumps, etc.

New buyers to the market

Buyers such as Apple are requiring and monitoring climate goals for their suppliers. Energy-intensive buyers are turning to long-term PPAs.

PPAs emerging as the prevailing mechanism of renewable procurement

In 2016, approximately 10% of RE100 members’ consumption was sourced via PPAs. In 2020, that number increased to nearly 30%.