Electricity bills increased by more than half at nearly 60% of medium and large companies, including a price jump of more than double for 34%. Faced with strong fluctuations in electricity prices, companies are increasingly turning to long-term cPPAs, which secure the price and supply of green energy for years, thus meeting EU zero-carbon targets. The challenges of the corporate cPPA market in Poland were presented at this year’s RE-Source Poland Conference.
Long-term contracts for the purchase of energy from RES are today a guarantee of a fixed energy price and the realization of decarbonization goals. On a European scale, Poland ranks 11th in terms of contracted capacity in corporate PPAs for green energy with a result of almost 1GW. cPPAs allow companies to achieve their business goals and contribute to the competitiveness of companies and their products on the international market.
– As the renewables market matures, expect innovations in green energy contracting by corporations that adapt to ESG requirements. The RE-Source Poland Foundation is working to make cPPAs more widespread and accessible to every customer, so that this model for purchasing renewable energy becomes the standard. In addition, with the current fluctuations in electricity prices, corporate PPAs will become the only instrument to guarantee price and energy supply stability – emphasizes Szymon Kowalski, vice president of the RE-Source Poland Hub Foundation.
Electricity prices have been rising continuously since 2020. This problem affects not only households, but also businesses, especially energy-intensive ones, causing a significant drop in their profitability. Analyses show that electricity bills have increased by more than half in almost 60% of medium and large companies, including for 34% the price jump was more than double.
Companies such as Amazon and KGHM have already decided to implement a sustainability strategy by deciding to enter into long-term cPPAs to mitigate the energy crisis and pursue a policy of decarbonizing the company and its products.
Qair has signed the first cPPA in Poland, under which it will deliver 2 TWh of power over 12 years. The company is already negotiating the terms of similar agreements with other leading brands to increase the number of projects outside the standard auction system in Poland.
– Corporations are increasingly interested in entering into cPPAs mainly for economic reasons. A 10-year or even longer contract duration means cost optimization and savings. The market for cPPAs in Poland is just emerging, market standards are beginning to clarify, and the green energy supply guarantee model among companies is becoming more visible every year. Thanks to the RE-Source Poland Conference, suppliers and potential buyers of energy from RES can have their first business meetings and learn about the specifics of cPPA contracts – explained Szymon Kowalski, vice president of the RE-Source Poland Hub Foundation.
The transition of companies to green, zero-carbon energy sources is not only a trend from the West, it is also a necessity in the face of the economic crisis. Entrepreneurs looking to reduce economic uncertainty will increasingly turn to solutions that increase resilience to dynamic changes in energy prices.
