Percentage of Additional Renewable Energy Capacity under PPAs
Source Research:
Energy Purchasing Strategies for Enterprises
The chart above depicts the percentage of net additional renewable energy (solar, wind, etc.) capacity generated from Power Purchase Agreements (PPAs) by region.
Currently, the global percentage of net additional renewable capacity under PPAs sits at 12%. As
shown in Chart 3, this will increase globally and we could see 20% of additional capacity under
PPAs in 2027. Asia-Pacific may be increasing its capacity in the future, but the percentage remains
relatively small because the majority of capacity will be under utility ownership, as utilities have
the capital to install these systems. It will only be in 2027 when we see the percentage increase. A
large portion of North America’s capacity will be expected to be under PPAs, as 2022 saw 54% of
the capacity added fall under PPAs. In the future, the trend will start to go down, while Europe will
remain steady with only a slight increase over the next 5 years.
