Shaping the Future of Energy, Materials and Infrastructure: Accelerating Renewable Energy Corporate Power Purchase Agreements in Emerging Economies

The document identifies key obstacles to the implementation of corporate power purchase agreements (CPPAs) in emerging and developing markets, such as state-controlled single-buyer models and restrictions on power wheeling. It argues that liberalizing these markets would allow global corporations to meet net-zero commitments, safeguard supply chains, and increase the deployment of renewable energy. The paper provides a comparative analysis of nine jurisdictions, including Brazil, Chile, and India, and offers policy recommendations to create an enabling environment for CPPAs, including the removal of single-buyer requirements and the facilitation of virtual and cross-border agreements.

• Corporate power purchase agreements (CPPAs) provide long-term price certainty for corporate customers and a predictable revenue stream for generators, which facilitates access to capital and allows for the construction of renewable infrastructure without relying on government tariffs.
• Major barriers to CPPA acceleration in emerging economies include heavily regulated power markets where state-owned entities act as the single buyer, and regulatory prohibitions against the 'wheeling' of power through open grid access, which prevents offsite PPA solutions.
• The lack of favorable CPPA regimes can negatively impact foreign direct investment, as global corporations increasingly prioritize the availability of directly procured renewable energy when making investment decisions, as seen with the expansion of data centers.
• Liberalizing CPPA markets helps safeguard supply chains by allowing suppliers in emerging economies to decarbonize, reducing the risk that global customers will seek alternative suppliers in jurisdictions with better renewable energy solutions or that they will be hit by carbon taxes and the Carbon Border Adjustment Mechanism.
• The document identifies specific regulatory hurdles for virtual PPAs, noting that in India there is confusion over whether the financial regulator or the electricity regulator has oversight due to the 'derivative' nature of the contracts.
• An analysis of nine jurisdictions shows that Brazil, Mexico, and Chile are considered broadly conducive to CPPAs, while Indonesia, Malaysia, and Viet Nam are viewed as not conducive or only moderately so unless key barriers, such as single-buyer market structures, are lifted.

APA

Hayes, M., Adomait, N., Adeosun, F., & Roche, J. (2021). Shaping the Future of Energy, Materials and Infrastructure: Accelerating Renewable Energy Corporate Power Purchase Agreements in Emerging Economies. World Economic Forum. https://www3.weforum.org/docs/WEF_Renewable_Energy_Corporate_PPA_2021.pdf

Chicago

Hayes, Michael, Natalie Adomait, Funke Adeosun, and Justine Roche. Shaping the Future of Energy, Materials and Infrastructure: Accelerating Renewable Energy Corporate Power Purchase Agreements in Emerging Economies. World Economic Forum, 2021. https://www3.weforum.org/docs/WEF_Renewable_Energy_Corporate_PPA_2021.pdf.

Wikipedia

{{cite report |last1=Hayes |first1=Michael |last2=Adomait |first2=Natalie |last3=Adeosun |first3=Funke |last4=Roche |first4=Justine |title=Shaping the Future of Energy, Materials and Infrastructure: Accelerating Renewable Energy Corporate Power Purchase Agreements in Emerging Economies |publisher=World Economic Forum |date=August 2021 |url=https://www3.weforum.org/docs/WEF_Renewable_Energy_Corporate_PPA_2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hayes2021shaping, author = {Hayes, Michael and Adomait, Natalie and Adeosun, Funke and Roche, Justine}, title = {{Shaping the Future of Energy, Materials and Infrastructure: Accelerating Renewable Energy Corporate Power Purchase Agreements in Emerging Economies}}, institution = {World Economic Forum}, year = {2021}, month = aug, url = {https://www3.weforum.org/docs/WEF_Renewable_Energy_Corporate_PPA_2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }