Major multinationals and energy companies call for greater EU policy ambition to unlock the potential of renewables in Europe’s energy mix.
Some of the world’s largest multinationals and energy companies today issued a joint declaration urging EU Member States to support a renewable energy target of at least 35% by 2030. The declaration was signed by members of RE100, the World Business Council for Sustainable Development, Solar Power Europe and WindEurope. It includes Google, Amazon, Microsoft, Unilever and Ikea.
The declaration states that corporate renewable power purchase agreements (PPAs) are key to building Europe’s clean energy transition. But in order to do so across Europe, the companies urge EU Energy Ministers to help them by adopting effective provisions in the new Renewable Energy Directive.
Corporate renewable PPAs allow companies to source their power from renewable energy providers at a competitive price over a long-term period. Such agreements ensure that Europe’s energy is greener and cleaner while also providing financial certainty for renewable energy providers. Corporate renewable PPAs can play a decisive role in delivering Europe’s Climate and Energy objectives: in the last two months alone, more than 1 GW of capacity was contracted through corporate renewable PPAs.
However, while corporate renewable PPAs can contribute to achieving national renewable energy ambitions – bringing forward billions of euros of investment, unlocking innovation and new business models – current regulatory practices in many EU Member States are blocking the huge potential these PPAs represent. The signatories of the letter thus urge Member States to lift all regulatory barriers to the development of corporate renewable PPAs, whether they are direct or indirect prohibitions.