What are long-term power purchase contracts, PPAs?

The PPAs are renewable energy purchase and sale contracts between a producer and a corporate consumer, that is, companies and other organizations, at a previously agreed price and for a long term, normally between 5 and 20 years. Thanks to the PPA and the use of renewable energies In their facilities, consumer companies reduce their ecological footprint on the environment. The energy comes from a renewable installation (wind or photovoltaic, in general) or a group of them. Until 10 years ago, this type of contract was still marginal. But a decade later, corporate purchasing of renewable energy is becoming one of the main drivers of global clean technology development. Only In 2019, PPAs worth 19.5 GW were signed compared to 0.1 GW in 2010. The US continues to be the main market for long-term energy purchase and sale contracts, although PPAs are spreading in Latin America, and are beginning to take off in Asia, Africa and Europe. However, despite the growth, in many European countries, for example, There are still many administrative obstacles and reducing these barriers is vital so that these types of clean energy agreements can become a much more widespread energy model.