A new form of Power Purchase Agreement (PPA) — the 24/7 clean PPA — promises dramatic increases in the effectiveness of emission reduction efforts in the power generation sector and for corporate off-takers. 24/7 clean PPAs have the potential to address key problems in balancing supply and demand for power as renewables contribute an increasing proportion of generation capacity. In the process they can help providers and off-takers accelerate the overall decarbonization of the power sector.
“A path towards full grid decarbonization with 24/7 clean power purchase agreements” was authored by the LDES Council in collaboration with McKinsey & Company as knowledge partner. This report focuses on corporate Power Purchase Agreements (PPAs) that, if properly designed, can become a key lever to capture the value of long duration energy storage (LDES) technologies and accelerate their deployment. It excludes the analysis of other complementary measures such as regulatory instruments, new market designs, or financial incentives.
Read the report here