Taking Renewables to Market: Prospects for the After‐Subsidy Energy Transition

Abstract

With the cost of solar and wind technologies having declined, governments are scaling back the subsidies and guarantees that have historically supported the development of renewable power. The renewables sector is struggling to stand commercially on its own feet, however: without state support, it is often difficult for developers to secure project funding. This article examines both this growing challenge to the energy transition and a key mechanism to which developers are turning to try to resolve it—the corporate power‐purchase agreement (PPA). Under renewables PPAs, corporations such as technology firms contract to buy electricity for periods of up to 15–20 years. Often pivotal in unlocking development finance, PPAs have been hailed as re‐energising a faltering energy transition. But to rely on the purchasing habits of the likes of Amazon and Google to maintain the shift into renewables is to raise important political, economic and ecological questions.