Global Power Purchase Agreement Market is valued at approximately USD 11.6 billion in 2021 and is anticipated to grow with a healthy growth rate of more than 4.9% over the forecast period 2022-2029. Power Purchase Agreement can be defined as a long-term electricity supply agreement between two parties. The agreement is generally signed between a power producer and a customer (Industrial or trader). The agreement comprised of rules and conditions which include the amount of electricity to be supplied, mutually agreed price, accounting of energy, and penalties for non-compliance with underline rules. Moreover, certain elements are common across all PPAs such as different considerations that apply for mid-range or peaking thermal plants or plants using different power generation sources including wind or solar for power production. The increasing adoption of renewable energy sources and growing electricity demand worldwide are key factors driving the market growth.
Over the years the demand for electricity has significantly increased due to growing industrialization and rising adoption of electric vehicles. For instance - as per Statista - as of 2020, the global electricity demand was estimated at 23,995 Terawatt hours, and as per projections the global electricity demand reach to 29463 Terawatt hours by 2030, and further 35277 Terawatt hours by 2040. Also, increasing investment in onsite and offsite clean energy power plants and rising industrialization in developing economies would create a lucrative growth prospectus for the market over the forecast period. However, the lack of incentives & government support coupled with improper regulatory framework impede the market growth throughout the forecast period of 2022-2029.
The key regions considered for the Global Power Purchase Agreement Market study include Asia Pacific, North America, Europe, Latin America, and Rest of the World. North America dominated the market in terms of revenue, owing to production of power through renewable sources and presence of leading market players in the region. Whereas Asia Pacific is expected to grow with the highest CAGR during the forecast period, owing to factors such as rising public-private spending on renewable energy sources as well as favorable government initiatives that positively influence the market growth over the forecast period in the region.
Major market players included in this report are:
- General Electric Company
- Siemens AG
- Statkraft Group
- Ameresco Inc.
- Enel S.p.A.
- Ecohz
- RES Group
- Schneider Electric
- Shell Plc.
- RWE AG
- Engie SA
Recent Developments in the Market:
- In November 2022, RWE announced the expansion of its green portfolio and enhances security of supply during energy crisis. In 2022, the company extended its green portfolio by 1.3 gigawatts and further 9.4 gigawatts through buildouts and acquisitions.
- In August 2022, Siemens Gamesa signed an agreement with ACEN CORPORATION to Develop a 70 MW Wind Farm in Philippines. The development is intended to fulfil the increasing demand for renewable energy in the country.
Global Power Purchase Agreement Market Report Scope:
- Historical Data: 2019-2020-2021
- Base Year for Estimation: 2021
- Forecast period: 2022-2029
- Report Coverage: Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
- Segments Covered: Type, Application, End-Use, Region
- Regional Scope: North America; Europe; Asia Pacific; Latin America; Rest of the World
- Customization Scope: Free report customization (equivalent up to 8 analyst's working hours) with purchase. Addition or alteration to country, regional & segment scope*
The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values to the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within countries involved in the study.
The report also caters detailed information about the crucial aspects such as driving factors & challenges which will define the future growth of the market. Additionally, it also incorporates potential opportunities in micro markets for stakeholders to invest along with the detailed analysis of competitive landscape and product offerings of key players. The detailed segments and sub-segment of the market are explained below.
By Type
- Physical PPA
- Portfolio PPA
- Block Delivery PPA
- Others
By Application
- Wind
- Solar
- Hydro
- Geothermal
- Others
By End-Use
- Corporate
- Merchant
- Residential
By Region:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Spain
- Italy
- ROE
- Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- RoAPAC
- Latin America
- Brazil
- Mexico
- RoLA
- Rest of the World
Table of Contents
Chapter 1. Executive Summary
- 1.1. Market Snapshot
- 1.2. Global & Segmental Market Estimates & Forecasts, 2019-2029 (USD Billion)
- 1.2.1. Power Purchase Agreement Market, by Region, 2019-2029 (USD Billion)
- 1.2.2. Power Purchase Agreement Market, by Type, 2019-2029 (USD Billion)
- 1.2.3. Power Purchase Agreement Market, by Application, 2019-2029 (USD Billion)
- 1.2.4. Power Purchase Agreement Market, by End-Use, 2019-2029 (USD Billion)
- 1.3. Key Trends
- 1.4. Estimation Methodology
- 1.5. Research Assumption
Chapter 2. Global Power Purchase Agreement Market Definition and Scope
- 2.1. Objective of the Study
- 2.2. Market Definition & Scope
- 2.2.1. Scope of the Study
- 2.2.2. Industry Evolution
- 2.3. Years Considered for the Study
- 2.4. Currency Conversion Rates
Chapter 3. Global Power Purchase Agreement Market Dynamics
- 3.1. Power Purchase Agreement Market Impact Analysis (2019-2029)
- 3.1.1. Market Drivers
- 3.1.1.1. Increasing adoption of renewable energy sources
- 3.1.1.2. Growing electricity demand worldwide
- 3.1.2. Market Challenges
- 3.1.2.1. Lack of incentives & government support
- 3.1.3. Market Opportunities
- 3.1.3.1. Increasing investment in onsite and offsite clean energy power plants
- 3.1.3.2. Rising industrialization in developing economies
Chapter 4. Global Power Purchase Agreement Market Industry Analysis
- 4.1. Porter's 5 Force Model
- 4.1.1. Bargaining Power of Suppliers
- 4.1.2. Bargaining Power of Buyers
- 4.1.3. Threat of New Entrants
- 4.1.4. Threat of Substitutes
- 4.1.5. Competitive Rivalry
- 4.2. Futuristic Approach to Porter's 5 Force Model (2019-2029)
- 4.3. PEST Analysis
- 4.3.1. Political
- 4.3.2. Economical
- 4.3.3. Social
- 4.3.4. Technological
- 4.4. Top investment opportunity
- 4.5. Top winning strategies
- 4.6. Industry Experts Prospective
- 4.7. Analyst Recommendation & Conclusion
Chapter 5. Risk Assessment: COVID-19 Impact
- 5.1. Assessment of the overall impact of COVID-19 on the industry
- 5.2. Pre COVID-19 and post COVID-19 Market scenario
Chapter 6. Global Power Purchase Agreement Market, by Type
- 6.1. Market Snapshot
- 6.2. Global Power Purchase Agreement Market by Type, Performance - Potential Analysis
- 6.3. Global Power Purchase Agreement Market Estimates & Forecasts by Type 2019-2029 (USD Billion)
- 6.4. Power Purchase Agreement Market, Sub Segment Analysis
- 6.4.1. Physical PPA
- 6.4.2. Portfolio PPA
- 6.4.3. Block Delivery PPA
- 6.4.4. Others
Chapter 7. Global Power Purchase Agreement Market, by Application
- 7.1. Market Snapshot
- 7.2. Global Power Purchase Agreement Market by Application, Performance - Potential Analysis
- 7.3. Global Power Purchase Agreement Market Estimates & Forecasts by Application 2019-2029 (USD Billion)
- 7.4. Power Purchase Agreement Market, Sub Segment Analysis
- 7.4.1. Wind
- 7.4.2. Solar
- 7.4.3. Hydro
- 7.4.4. Geothermal
- 7.4.5. Others
Chapter 8. Global Power Purchase Agreement Market, by End-Use
- 8.1. Market Snapshot
- 8.2. Global Power Purchase Agreement Market by End-Use, Performance - Potential Analysis
- 8.3. Global Power Purchase Agreement Market Estimates & Forecasts by End-Use 2019-2029 (USD Billion)
- 8.4. Power Purchase Agreement Market, Sub Segment Analysis
- 8.4.1. Corporate
- 8.4.2. Merchant
- 8.4.3. Residential
Chapter 9. Global Power Purchase Agreement Market, Regional Analysis
- 9.1. Power Purchase Agreement Market, Regional Market Snapshot
- 9.2. North America Power Purchase Agreement Market
- 9.2.1. U.S. Power Purchase Agreement Market
- 9.2.1.1. Type breakdown estimates & forecasts, 2019-2029
- 9.2.1.2. Application breakdown estimates & forecasts, 2019-2029
- 9.2.1.3. End-Use breakdown estimates & forecasts, 2019-2029
- 9.2.2. Canada Power Purchase Agreement Market
- 9.3. Europe Power Purchase Agreement Market Snapshot
- 9.3.1. U.K. Power Purchase Agreement Market
- 9.3.2. Germany Power Purchase Agreement Market
- 9.3.3. France Power Purchase Agreement Market
- 9.3.4. Spain Power Purchase Agreement Market
- 9.3.5. Italy Power Purchase Agreement Market
- 9.3.6. Rest of Europe Power Purchase Agreement Market
- 9.4. Asia-Pacific Power Purchase Agreement Market Snapshot
- 9.4.1. China Power Purchase Agreement Market
- 9.4.2. India Power Purchase Agreement Market
- 9.4.3. Japan Power Purchase Agreement Market
- 9.4.4. Australia Power Purchase Agreement Market
- 9.4.5. South Korea Power Purchase Agreement Market
- 9.4.6. Rest of Asia Pacific Power Purchase Agreement Market
- 9.5. Latin America Power Purchase Agreement Market Snapshot
- 9.5.1. Brazil Power Purchase Agreement Market
- 9.5.2. Mexico Power Purchase Agreement Market
- 9.5.3. Rest of Latin America Power Purchase Agreement Market
- 9.6. Rest of The World Power Purchase Agreement Market
Chapter 10. Competitive Intelligence
- 10.1. Top Market Strategies
- 10.2. Company Profiles
- 10.2.1. General Electric Company
- 10.2.1.1. Key Information
- 10.2.1.2. Overview
- 10.2.1.3. Financial (Subject to Data Availability)
- 10.2.1.4. Product Summary
- 10.2.1.5. Recent Developments
- 10.2.2. Siemens AG
- 10.2.3. Statkraft Group
- 10.2.4. Ameresco Inc.
- 10.2.5. Enel S.p.A.
- 10.2.6. Ecohz
- 10.2.7. RES Group
- 10.2.8. Schneider Electric
- 10.2.9. Shell Plc.
- 10.2.10. RWE AG
- 10.2.11. Engie SA
Chapter 11. Research Process
- 11.1. Research Process
- 11.1.1. Data Mining
- 11.1.2. Analysis
- 11.1.3. Market Estimation
- 11.1.4. Validation
- 11.1.5. Publishing
- 11.2. Research Attributes
- 11.3. Research Assumption