INTRODUCTION

Introduction

To meet their sustainability targets and protect themselves against price volatility in energy markets, an increasing number of companies across Europe are paying close attention to Corporate Power Purchase Agreements (CPPAs). These direct contracts between a producer and a consumer secure a supply of high-quality green energy for the long-term at a firm price.

Every quarter, Capgemini Invent publishes its European CPPA Barometer, a comprehensive report on the latest deals and trends, bringing more transparency to this dynamic market composed of over-the-counter contracts.

This second edition of the Barometer covers Q1 2023, during which period European energy markets were marked by a general decrease in prices. Moreover, EU Member States introduced temporary profit caps for energy generation, sometimes with high discrepancies across countries. Despite this, the CPPA market has never been so active. In almost all the studied countries in this report, 65 deals were signed (versus a hundred for 2022 year), record-level volumes were announced (+19% versus total volume cumulated by the end of 2022), and energy-intensive offtakers finalized multiple agreements in various geographies.

Methodology

In terms of methodology:

The Barometer covers the national CPPA market of 13 European countries. France is also covered in more detail in the Baromètre des Achats d’Energie Verte, a quarterly green sourcing report published in parallel: Read Report
The main indicator presented in the report is the cumulated annual volume of CPPAs announced in each country. It corresponds to the sum of the electricity volume (in GWh/y) of all CPPAs that have been signed in this country during this particular year. It does not correspond to the volume supplied under CPPAs during the same year. Additionally, volumes of CPPAs that have expired have not been removed.
Only CPPAs that have been publicly announced are taken into account. All figures are public data, shared by corporations in official press releases. In some cases, the annual volume of a CPPA has been estimated using the capacity figure (shared in the public announcement) and an estimate of the capacity factor of the technology used in the country.
Onsite PPAs (usually small-scale) and Utility PPAs are not covered in this Report.
Cross-border CPPA volumes are accounted for in the Offtaker’s country (e.g., a CPPA signed for a Sweden-based asset to cover energy consumption in Norway is considered for Norway).
Several cross-border CPPAs aim to cover consumption in multiple countries at the same time: these deals are studied in the “multi-country” category, which specifies the main countries used to house the production asset.