Outlook positive for corporate renewable PPAs in 2021, despite COVID-19: Report

The demand for corporate renewable power purchase agreements (PPAs) is expected to increase in 2021 despite the COVID-19 pandemic as a result of increased sustainability ambitions by leading corporate buyers, according to a recent report.

It added that government reforms in the sector might stimulate uptake of corporate renewable PPAs, including the new draft Electricity Amendment Bill and the privatisation of discoms.

“Company interest in corporate renewable PPAs remains high in India. Power demand in India has bounced back to pre-COVID levels and negotiations paused in 2020 due to the COVID-19 pandemic are expected to resume in 2021,” said the report by World Business Council for Sustainable Development (WBCSD) and JMK Research.

WBCSD is a Geneva-based CEO-led organisation of over 200 businesses that works in the area of sustainability.

It said that factors which posed new challenges for corporate renewable PPAs in 2020 were state-level restrictions – including delayed project approvals and additional charges