São Paulo, 19 March: Today the Brazil Corporate Renewable PPA Forum launched a new guide to help procurement professionals in Brazil source more renewable energy: the Guide to Corporate Renewable Power Purchase Agreements (PPAs) in Brazil (in Portuguese, with a summary in English).
Coordinated by WBCSD and Conselho Empresarial Brasileiro para o Desenvolvimento Sustentável (CEBDS), the Brazil Corporate Renewable PPA Forum is an engaged group of 29 companies from across the renewable energy value chain which aims to increase companies’ understanding and use of corporate renewable PPAs in Brazil.
The report provides guidance to corporate buyers on the opportunities and risks that PPAs can offer in Brazil; and gives new details on trends and regulation relating to corporate renewable sourcing. By increasing procurement professionals’ capacity, the report aims to increase the number of renewable PPAs signed in Brazil between corporate energy buyers and energy suppliers.
- The Brazilian government is currently reviewing the country’s national electricity regulation to introduce improvements such as cost reduction, rationalization of subsidies, robust pricing and efficient incentives to drive investments in the electricity sector. The report explains how these potential regulatory changes would affect corporate sourcing of renewables for corporate energy buyers and suppliers.
- Despite this regulatory uncertainty, Brazil has great potential to lead on corporate renewable PPAs. According to data from BloombergNEF, the volume of renewable electricity procured via newly signed corporate PPAs doubled between March and November 2019.
- The Brazil Corporate Renewable PPA Forum expects emerging trends such as incentivized self-generation PPAs, downward price curves and an interest in dollar-indexed PPAs to further increase PPA growth in Brazil.
A list of publicly announced corporate renewable PPAs in Brazil is shown below:
Lucy Hunt, Manager, Energy and WBCSD Lead for the Brazil Corporate Renewable PPA Forum said: “Since the Brazil Corporate Renewable PPA Forum was formed 18 months ago, we’ve seen rapid growth in the frequency of corporate renewable PPAs signed across Brazil, now the tenth largest market in the world for volume of renewable energy capacity signed. We expect companies to continue accelerating procurement of renewable electricity by introducing innovative models for sourcing, such as some of those detailed in this report.”
Karen Tanaka, Technical Manager and CEBDS Lead for the Brazil Corporate Renewable PPA Forum said: “This guide is a useful tool for corporate buyers who want to understand how they can increase their procurement of renewable energy in Brazil. It presents a step-by-step guide to renewable PPAs from a thorough introduction to corporate renewable sourcing, to topics covering regulatory developments, business decision-making, challenges and opportunities, and even how to organize your team to gain internal buy-in for PPAs in your organization.”
WBCSD and CEBDS would like to thank the following co-authors for their valuable contributions to this report: Schneider Electric (lead author), Enel Green Power, EDF Renewables, EDP Renováveis, LafargeHolcim, ENGIE and Stocche Forbes Advogados.
This guide follows the release of the Executive Guide to Power Purchase Agreements in Brazil co-published by WBCSD and CEBDS in May 2019, which aims to give high-level executives an understanding of the opportunities that PPAs present for corporate buyers.