At the time of writing, Europe had had its most successful year in terms of Power Purchase Agreements (PPAs) with a record 7.8GW of renewable energy contracts signed. ICT (2GW), heavy industry (1.8GW) and telecoms (650MW) did much of the heavy lifting with other sectors bringing up the rear. As we gather in May 2024 for the third edition of the Renewable Energy Revenues Summit, the energy landscape continues to evolve rapidly, influenced by the beating drum of climate change, volatility around power prices and the need to decarbonise power procurement as well as generation.
Recent data indicates that power prices have started to fall, following the shocks in autumn 2022 which triggered inflation across the world. However, with CAPEX and interest rates still high, energy suppliers are under pressure to optimize their revenues from both PPAs and the wholesale market. We are also seeing a slow down in some renewable segments when it comes to new installations as well as some institutional capital in “wait and see” mode given the new economic reality. How companies adapt is vital to their success in 2024.