15 years of innovation in Corporate PPAs driving the energy transition 

For the past 15 years, the story of Corporate Power Purchase Agreements (PPAs) has been one of creativity and innovation. Traditionally, companies secured electricity through contracts lasting a maximum of one to two years. The shift to fixed-price contracts of 10 or even 15 years is a major advancement requiring real foresight. Innovation has occurred at every level from decision-making to legal frameworks to accounting treatment. This creative spirit has enabled buyers and sellers of green power to develop new PPA models: physical, virtual, cross-border, and unbundled agreements separating electricity from green certificates. Today, a single definition of “PPA” no longer exists. 

These changes have been driven by market evolution. “To stay relevant, it’s essential to track major market trends, as these fuel innovation,” notes Jérôme Malka. Geopolitical disruptions have created economic uncertainty and global challenges in value chains, including in renewable energy. Meanwhile, constant regulatory changes create a volatile environment where ongoing innovation is key to ensuring a sustainable and affordable energy supply. 

So, what current trends require us to mobilize our full innovative capacity? Key points include:   

• Faster, simpler, and more economical contracting processes,   

• Enhanced time-matching between energy demand and clean power supply,   

• Managing strong demand growth in the tech sector, driven especially by AI,   

• Ensuring smaller businesses have access to green energy to make the energy transition inclusive,   

• Deploying PPAs in every market where we operate, especially as appetite for green energy grows in Asia,   

• Managing the increasing number of negative pricing hours in certain grid parts. 

Behind each of these challenges lie technological and contractual innovations. “Battery storage, digital marketplaces, streamlined PPA negotiations, low-carbon molecules like hydrogen or ammonia, and hybrid PPAs combining multiple production and storage technologies are tangible examples of our industry’s collective capacity to innovate,” says Jérôme Malka. 

ENGIE is guided by a clear purpose: accelerating the energy transition. Jérôme reminds us that the challenges of decarbonizing the economy call for an open mind toward all possible solutions. “The recent emergence of nuclear as a more widely accepted source of decarbonized electricity is a good reminder for our renewable industry to keep progressing on sustainability, affordability, and security,” he adds. ENGIE is proud to partner with its stakeholders to innovate and shape the energy future together.