Corporate PPA: Automotive manufacturer Stellantis signs 400 MW corporate PPA with American utility DTE Energy

Stellantis will source the power through DTE’s MIGreenPower voluntary renewable energy program, one of the United States' largest utility-led clean power procurement initiatives. The corporate power purchase agreement (PPA) is the second largest supply contract signed with a US-based utility, the first being Ford Motor’s 650 MW agreement, also signed with DTE Energy earlier this year. The move will help Stellantis power its operations at 70 Michigan sites with 100% solar energy by 2026, helping the company reduce its carbon emissions across North America by 50% and across its manufacturing facilities by 30%.

Launched in 2017, DTE’s MIGreenPower program is now among the top three voluntary renewable energy programs in the US. Its popularity has spurred a boom in solar PV and wind energy in the state, recording a doubling of enrollment for each of the past three years. In 2021, DTE achieved the state’s 15% renewable portfolio standard (RPS) – and then increased its renewable energy capacity by 40% as a direct result of the growth of the MIGreenPower program. The initiative serves both residential and commercial customers and has numerous industrial energy purchasers. DTE said it plans to double its renewable energy generation by 2025, investing $3 billion in renewable infrastructure in the process.

According to reports by the National Renewable Energy Laboratory (NREL), the voluntary renewable energy market in the US has grown ~20% annually over the last few years. The portion of that market served by vertically integrated utilities has grown steadily too, driven by demand coming from residential and commercial customers. Going forward, Enerdatics expects such utility-led renewable energy procurement programs to move to the forefront of the PPA landscape in the US, driven by rising demand from residential and commercial customers.

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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