Published
19 March, 2020Type
PublicationCompanies worldwide are seeking new ways to reduce the environmental impact of their energy consumption and lower their energy costs. While reducing energy use through energy efficiency is crucial to achieving this goal, companies need to maintain their operations. Purchasing electricity from renewable sources is an increasingly popular means for commercial and industrial companies to manage energy costs and reduce their carbon footprint.
In March 2020 the Brazil Corporate Renewable PPA Forum, coordinated by WBCSD and Conselho Empresarial Brasileiro para o Desenvolvimento Sustentável (CEBDS), published the Guide to Corporate Renewable Power Purchase Agreements (PPAs) in Brazil (in Portuguese, with a summary in English).
This report provides guidance to corporate buyers on the opportunities and risks that PPAs can offer in Brazil; and provides new details on trends and regulation relating to corporate renewable sourcing. By increasing procurement professionals’ capacity, the report aims to increase the number of renewable PPAs signed in Brazil between corporate energy buyers and energy suppliers.
The report shows that despite uncertainty in its electricity regulations, the number of renewable PPAs signed in Brazil doubled from March to November 2019, making it the 10th largest market for corporate renewable PPAs in the world. The Brazil Corporate Renewable PPA Forum expects emerging trends such as incentivized self-generation PPAs, downward price curves and an interest in dollar-indexed PPAs to further increase PPA growth in Brazil.
This report follows the release of the Executive Guide to Power Purchase Agreements in Brazil co-published by WBCSD and CEBDS in May 2019, which aims to give high level executives an understanding of the opportunities that PPAs present for corporate buyers.