Asia Pacific is set to see a record 7GW of renewable capacity contracted to corporations in 2022, an 80% increase on 2021, according to analysis from Wood Mackenzie.
In the second half of 2022, corporate power purchase agreements (PPAs) for renewables are on pace to increase by about 4 GW.
The increase is partly due to markets in the region emerging from pandemic-related disruptions and corporate as well as governmental decarbonisation targets.
Wood Mackenzie found that PPAs are becoming increasingly attractive as fuel prices rose and the cost of renewables has come down.
The levelised cost of electricity (LcoE) for utility-scale solar has fallen by 4.9% since 2019, while commercial solar has dropped 14.2%.