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Helping you make sense of the energy and water sectors

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SEM Chart of the Week

2019

Corporate PPAs: signed, sealed… delivered?

Ruth Young Training Consultant

Back in April of this year, following Amazon’s announcement of Ireland’s first unsubsidised corporate power purchase agreement (CPPA), we asked if this Amazon deal signalled growth in this sector or whether this would be an isolated example. Since then, the Irish Government published the Climate Action Plan (CAP) in June, stating an ambition to meet 15% of electricity demand by renewable sources contracted by way of CPPAs. This week we also heard news that Amazon Web Services (AWS) has signed a second unsubsidised CPPA in Ireland, to purchase electricity from a proposed 23.3MW wind development in County Cork. In this edition of SEM Chart of the Week, we revisit the Irish CPPA sector and assess whether the government’s ambition is about to become a reality. I just called to say… CPPAs have been a big topic of discussion over the past couple of years, with a survey performed at our March industry event showing a scepticism in how big a part these contracts would play in terms of a route to market for renewable energy projects. The government, however, does not share this pessimistic view, having set their sights on CPPAs contributing significantly to delivering 2030 targets. The draft National Energy and Climate Plan (NECP) submitted by the Irish government to the EU at the end of 2018 set an initial 2030 target of 55% of electricity from renewables, to be supported by the RESS. With this target now increasing to 70%, CPPAs seemingly becomes the “silver bullet&...

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