Cross-border renewable PPAs in Europe

This report aims to help companies understand the technicalities of cross-border PPAs by providing a balanced view of the risks and opportunities that the cross-border PPA structure can provide.

In a cross-border PPA, a company purchases renewable electricity generated outside the electricity market of their electricity load, via a corporate renewable PPA. This means that renewable electricity can be generated in locations in Europe where it can be most efficiently produced, offering greater flexibility for companies procuring and selling renewable electricity alike.

The report explains that as well as providing efficiency and flexibility benefits, cross-border PPAs inherently introduce new risks into the PPA compared to typical in-market PPA structures. It outlines how companies can carefully evaluate and manage these risks, such as detail on basis risk, market boundary guidance to help companies report renewable electricity consumption and the importance of implementing a thorough and robust due diligence process.

Produced in collaboration with the RE-Source Platform, of which WBCSD is a founding organization, this report builds on previous reports on corporate PPAs. These include Corporate Renewable Power Purchase Agreements: Scaling up globally (26 October 2016) and Innovation in Power Purchase Agreement Structures (27 March 2018) and How multi-technology PPAs could help companies reduce risk (7 March 2019).

These reports cover the opportunities that corporate PPAs offer, the obstacles that corporate buyers and developers face as they plan and negotiate PPAs, as well as innovations in corporate PPAs as the market grows and evolves.