Corporates Accelerate Renewable Energy Procurement Through PPAs and EACs

Corporate demand for clean electricity is reshaping renewable energy markets, driven by emissions reduction targets and electricity price volatility. RE100 members currently secure 249 terawatt-hours of renewable power annually but need an additional 290 TWh by 2030 to meet their commitments.

Companies pursuing 100% renewable electricity have three principal procurement options: Energy Attribute Certificates (EACs), Power Purchase Agreements (PPAs), and Virtual Power Purchase Agreements (VPPAs). EACs confirm generation of one megawatt-hour of clean energy and are valued for ease of purchase and cost-effectiveness. PPAs are long-term contracts with renewable developers that provide price stability and allow buyers to claim environmental benefits. VPPAs involve selling generated power to the grid while the buyer receives certificates and benefits financially from price differentials.

No single approach suits all companies, as the optimal strategy depends on market conditions, organisational scale, and risk appetite. RE100 recently added criteria around commissioning and repowering dates to incentivise additionality — ensuring that corporate purchases lead to genuinely new clean energy capacity rather than simply re-labelling existing generation. The growing interest in hourly matching of electricity consumption with clean generation is pushing companies to diversify their clean energy supply portfolios to achieve 24/7 coverage.

Electricity price volatility is pushing buyers toward longer-term contracts, enabling new project development and reinvestment in additional renewable capacity. Corporate Power Purchase Agreements have attracted significant market attention but require careful structuring to avoid unfavourable exposure to electricity market swings. Strive By STX, a CDP Gold Accredited Solution Provider, planned a webinar with CDP to help organisations navigate these procurement choices and hear from companies with direct experience across all three approaches.

Key figure — 290 TWh additional renewable power needed by RE100 members by 2030