What is the PPA Engine?
The PPA Engine is a mechanism to scale private sector investment in renewable energy globally through the use of Power Purchase Agreements - not only helping to decarbonise industry, but also adding to the net volume of renewable energy available on the market
The PPA engine has multiple solutions in pursuing this goal globally, that will be used depending on the specific conditions in the relevant countries.
These solutions include:
Leveraging private sector PPA demand and expert technical recommendations to support the implementation of PPA-supporting legislation, or to address legislative barriers to uptake of physical and virtual PPAs
Creating intermediary entities with financial guarantees to ‘buffer’ financial credit exposure for PPA agreements and provide energy developers for incentives to increase renewable energy to the grid, whilst providing shorter-term, lower risk offtake agreements to smaller and credit-challenged SMEs in developing countries
Creating mechanisms to aggregate energy demand to allow many smaller companies to access PPA and VPPA markets
Future Earth Lab has been exploring with some potential in-country partners in highly strategic locations where (V)PPAs would be beneficial to companies and to the share of grid renewable energy.
At least one market will be selected for initial rollout of a relevant solution to increase uptake of PPAs in the private sector - with the ultimate aim of significantly decarbonising industrial production in the region and increasing the additional renewable energy inputs to the country's electricity grids.
Once this first market is established, additional markets will be identified and targeted in collaboration with companies, NGOs and development organisations.
If you would like to participate in this programme, we would love to hear from you, so feel free to get in touch or watch this page for more updates!