Build it, or buy it – Offshore wind CPPAs on the rise, ‘powered by renewables’ gains momentum

Is climate change pushing the corporate world to use as much renewable energy as possible? Or, is it because of financial reasons, such as long-term fixed prices? Or, is it „the brand kudos that comes with procuring energy from renewable sources“, as one recent report mentioned? If we are now moving faster toward a greener, cleaner world, the motivation is perhaps not even that important. One thing is for sure, more and more power purchasing contracts are being signed in renewable energy lately.

World’s largest corporate power purchase agreement (CPPA) in renewable energy was signed for an offshore wind farm in Taiwan on 8 July. The buyer is a semiconductor company, which inked the contract with Ørsted for 20 years for a project that will enter commercial operation in 2025/2026.

A few months ago, Ørsted entered a 15-year power purchase agreement (PPA) for the output of 31 MW from its Race Bank offshore wind farm with Nestlé UK, the UK subsidiary of the world’s largest food and beverage company.