Slowdown in corporate PPAs

Slowdown in corporate PPAs

August 19, 2020 | By Keith Martin in Washington, DC

New corporate PPAs have become scarce.

Brokers and lawyers report less interest among US companies in signing long-term corporate power purchase agreements due to uncertainty about the economy.

An interesting question is what happens to existing PPAs with corporations in the retail trade that are having to close stores. 

The US Energy Information Administration is projecting that commercial-sector electricity demand will be down 7.4% in 2020 compared to 2019. The agency expects overall US electricity usage to be down 3.6%. The latest forecasts are in the “August 2020 Short-Term Outlook.”