While the global contracted capacity declined y/y in H1 2023 due to macroeconomic hurdles, volume is poised to surge in H2 2023. The expected surge in H2 2023 will be driven by continuous declines in power prices, as gas prices fall, and optimism in economic recovery in the US and Europe. Additionally, rising power demand in APAC’s industrial and technology sectors will drive PPA activity as contracted volumes in North America and Europe steadily catch up to 2022 levels, consistent with the trend observed since 2020.
Q2 2022 witnessed an unprecedented surge in contracted capacity, driven by technology and industrial firms which sought to preempt the rise in power prices due to energy supply volatilities surrounding the Russia-Ukraine war, by locking in long-term contracts with project developers.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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