“Amazon is wasting no time demonstrating that they are fully committed to a clean energy future for all,” said Gregory Wetstone, CEO of the American Council on Renewable Energy. “At COP26, the world agreed we needed bigger and bolder ambitions around global carbon reduction from all sectors. With hundreds of renewable energy projects already underway, Amazon is a model for the level of urgency and action we need from the private sector to combat the climate crisis.”
Corporate demand for renewable energy is driving the record deployment of clean energy resources around the world. The power purchase agreement, or PPA, allows a corporation to match its annual energy consumption with clean energy produced elsewhere.
Demand for renewable energy by public and corporate groups, coupled with global supply chain constraints, are likely causing the pricing pressure, analysts wrote.
“Much like we’re seeing supply constraints in other areas of the economy, the most desirable wind and solar projects are going fast," said Rob Collier, vice president of developer services at LevelTen Energy. "The key takeaway for organizations with fast-approaching emissions reductions targets is to act now to capture high-value PPAs."
While PPA prices are trending upward, LevelTen doesn't expect demand to soften. According to a survey by the firm, only 12% of solar developers are responding to supply chain pressures by delaying projects.
“ERCOT solar prices have increased by nearly 10% since Q2 2020, driven by steady quarterly increases in pricing at ERCOT’s North, South, and Houston settlement hubs,” Collier said. “Still, ERCOT continues to be the most competitive solar market in the U.S., as abundant land, a unique market structure, and high insolation provide a favorable environment for solar development."
John Engel is the Content Director for Renewable Energy World. For the past decade, John has worked as a journalist across various mediums -- print, digital, radio, and television -- covering sports, news, and politics. He lives in Asheville, North Carolina with his wife, Malia.
Have a story idea or a pitch for Renewable Energy World? Email John at email@example.com.