Corporate power purchase agreements and their influence on the expansion of large-scale renewable energy projects in the U.S.

Onyeka, Ebere J (2025) Corporate power purchase agreements and their influence on the expansion of large-scale renewable energy projects in the U.S. World Journal of Advanced Research and Reviews, 25 (3). pp. 678-696. ISSN 2581-9615

Corporate Power Purchase Agreements (CPPAs) have emerged as a critical driver of renewable energy expansion in the United States, enabling corporations to procure wind and solar power while supporting sustainability goals. This paper examines the role of CPPAs in accelerating the transition to a low-carbon economy by improving the financial viability of renewable energy projects, reducing dependence on fossil fuels, and contributing to corporate decarbonization efforts. Through long-term contracts, CPPAs provide stable revenue streams for developers, facilitating investment in large-scale renewable projects. However, their adoption varies across regions due to differences in electricity market structures and regulatory barriers. The study identifies key challenges, including market volatility, contract complexity, and limited access in regulated markets, while highlighting emerging innovations such as hybrid CPPAs, energy storage integration, and peer-to-peer energy trading as solutions to enhance procurement flexibility and grid reliability. Policy recommendations focus on expanding CPPA access nationwide, modernizing grid infrastructure, streamlining permitting processes, and implementing carbon pricing mechanisms. Additionally, corporate strategies for maximizing CPPA benefits include portfolio diversification, multi-buyer agreements, and aligning procurement with Environmental, Social, and Governance (ESG) goals. As corporate commitments to carbon neutrality grow, CPPAs are expected to remain a cornerstone of renewable energy investment. This paper underscores the need for collaborative efforts between policymakers, corporations, and energy developers to foster an efficient and inclusive CPPA ecosystem. By addressing regulatory barriers and leveraging emerging procurement models, CPPAs can play a pivotal role in driving sustainable energy adoption and achieving long-term climate objectives.