PPAs (Power Purchase Agreements) are long-term renewable energy contracts. PPAs are a way of decarbonizing the purchaser’s electricity consumption and helping large companies that consume a lot of energy to contribute to the transition to renewable energy. Corporations and large institutions often use PPAs for renewable electricity to manage utility expenses and to meet their sustainability goals. Note that there are several different types of PPAs, including Physical PPAs and Virtual PPAs (VPPA).
Source: https://www.epa.gov/green-power-markets/physical-ppa
Source: https://www.engie.com/en/news/ppa-power-purchase-agreement-what-is-it
Renewable generation in PJM has been increasing over the past few years and will play a larger role in the market’s resource mix going forward. Coal-fired capacity is retiring at a rapid pace, and the interconnection queue is heavily comprised of renewable capacity. There is approximately 133 GW of utility-scale solar, wind, and offshore wind projects with queue positions in various stages of development.
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ESAI Power is a market research and consulting firm that delivers focused analysis of the wholesale power markets in the Northeast region of the US: PJM, NYISO, and ISO-NE. Since 2001, ESAI has been providing market-focused research product content and custom consulting services for Northeast power market participants including investors (banks, private equity, & hedge funds) & developers, generation owners & operators, utilities & retail electricity suppliers, regulators & RTOs, traders, and end-users & buyers.