FINAL STATEMENT “Corporate PPA: A Mutually Beneficial Partnership for Sustainable Business and Energy Development”

FINAL STATEMENT
“Corporate PPAs: A Mutually Beneficial Partnership for Sustainable Business and Energy Development”

On July 25, 2024, the UN Global Compact Ukraine, in collaboration with ExPro and within the framework of the Ukraine Energy Initiative, held an online discussion titled “Corporate PPAs: A Mutually Beneficial Partnership for Sustainable Business and Energy Development.”

The event brought together representatives of renewable energy producers, industry associations, and energy supply companies.

STATE OF UKRAINE’S ENERGY SYSTEM AND GLOBAL TRENDS

Despite the ongoing war, Ukraine’s energy system continues to demonstrate resilience. However, considering the scale of destruction caused by massive missile and drone attacks, there is an urgent need for the rapid restoration of damaged infrastructure and the implementation of new, modern generating capacities. Experts agree that Ukraine has already lost 9 GW of installed capacity, leading to a significant energy deficit and the necessity of scheduled power outages for both industrial and residential consumers, which become especially critical during peak consumption periods.

According to last year’s assessment by NPC Ukrenergo, in the coming years, Ukraine’s energy system will require an additional 3.8 GW of solar (SES) and 4.5 GW of wind (WES) power plants, necessitating investments of approximately $8 billion USD.

It is important to note that the global trend of modern energy development is the transition to renewable energy sources (RES). Leading international companies and corporations are already implementing policies and strategies based on social responsibility and environmental sustainability. The commitment to maximizing the use of green electricity in daily operations is becoming a key driver for the development of new RES capacities.

As of June 2024, the share of RES in Ukraine’s total electricity generation reached 18%, representing a substantial portion of the country’s energy mix. This highlights the significant role that existing RES play in meeting electricity demand. However, to ensure stability, continued investment in this sector is necessary, along with the real implementation of the “Build Back Better” principle—restoring the energy system to be stronger and more sustainable than before.

Drawing from the experience of RES development in Europe and the United States, it is evident that many countries have transitioned—or are in the process of transitioning—from the feed-in tariff support system to more competitive mechanisms. These include auctions and corporate power purchase agreements (Corporate PPAs), which are becoming a preferred model for fostering sustainable energy investments.