Guidehouse Insights Estimates North American Power Purchase Agreement Market Will Grow at a Compound Annual Growth Rate of 16% Through 2031

Market barriers include regulatory and policy barriers, risks associated with PPA contracts, and a complex process

BOULDER, Colo., Aug. 23, 2022 /PRNewswire/ -- A new report from Guidehouse Insights analyzes annual corporate power purchase agreement (CPPA) deals in terms of power capacity (MW) and project deployment spending. The report focuses on the key market trends in five world regions—North America, Europe, Asia Pacific, Latin America, and Middle East & Africa—and identifies the top 5 markets across those world regions.

Falling renewable energy (RE) technology costs, increasing consumer tariffs, and stringent climate goals have led to the emergence of the power purchase agreement (PPA) market. In the energy transition, the decentralization of power systems and unbundling of power system services have enabled new revenue streams for energy asset owners, particularly for those with higher RE technologies in their portfolios. According to a new report from Guidehouse Insights, with its head start in the CPPA market, North America currently leads the global market with an estimated capacity of 18,888.9 MW, which is expected to jump to 72,567.9 MW in 2031 at a CAGR of 16.1%.

"The PPA concept developed when private and public institutions began bypassing the utility companies to purchase energy directly from independent power producers," says Rohith Unni, research analyst with Guidehouse Insights. "Private organizations have become proactive in reducing their carbon footprints without compromising their business operations. As a result, the role of RE in a company's energy strategy has been raised from a technical exercise to a strategic and commercial priority."

As private companies' primary motivations begin encompassing better economics with long-term price visibility, sustainability through emission reduction, and climate leadership, they have increased their renewable electricity procurement. Although corporations see the corporate power purchase agreement as a strong alternative for RE procurement, the complex process and non-standardized structure leave them dependent on external sources to understand the risks and rewards involved, according to the report.

The report, Market Data: State of the World's Top Five Power Purchase Agreements Markets, provides global analyses for annual CPPA deals in terms of power capacity (MW) and project deployment spending ($ millions). These outlooks are segmented by region, by technologies, and by the top five markets. All analyses cover the 10-year period from 2022-2031. An executive summary of the report is available for free download on the Guidehouse Insights website.

Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 13,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

* The information contained in this press release concerning the report, Market Data: State of the World's Top Five Power Purchase Agreements Markets, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

For more information, contact:

Cecile Fradkin
+1.646.941.9139
[email protected]

SOURCE Guidehouse Insights