Re-Source Webinar: EMEA Corporate PPAs Kyle Harrison March 5, 2018 SolarPower Europe
Analysis to help you understand the future of energy Solar Wind Power and Utilities Gas Carbon Markets & Climate Energy Smart Technologies Storage Electric Vehicles Mobility and Autonomous Driving Frontier Power Emerging Technologies Americas Europe, Middle East & Africa Asia Pacific 1 March 5, 2018 SolarPower Europe
With 200 experts across six continents 40 San Francisco North America New York Washington DC London 90 Munich Zurich Milan Europe Beijing 35 Asia Pacific Tokyo Shanghai New Delhi Hong Kong 30 Africa Singapore 5 South America Sao Paulo Cape Town Sydney 2 March 5, 2018 SolarPower Europe
2017 was a record year for corporate PPAs globally Global corporate PPA volumes, by region Annual volume (GW) 6 5 4 3 2 1 0 0.1 0.6 1.5 0.8 3.3 Cumulative volume (GW) 2008 9 10 11 12 13 14 15 16 17 18 YTD AMER EMEA APAC Cumulative 0.6 1.1 2.5 1.3 1.1 3.1 1.0 24 20 16 12 8 4 0 Source: Bloomberg New Energy Finance Note: Onsite PPAs not included. APAC number is an estimate. Pre-market reform Mexico PPAs are not included. These figures are subject to change and may be updated as more information is made available. 3 March 5, 2018 SolarPower Europe
Corporate procurement has reached a global scale Corporate PPA RE100 commitment Both Source: Bloomberg New Energy Finance, The Climate Group 4 March 5, 2018 SolarPower Europe
New companies are establishing targets and purchasing clean energy Top EMEA corporate buyers New entrants in EMEA, 2017 MW Norsk Hydro Google 744 679 Vivens Alcoa Microsoft Deutsche Bahn Facebook BT Group HSBC McDonald's 378 281 217 205 150 132 6141 84 Solar Wind Other Source: Bloomberg New Energy Finance Note: Onsite PPAs not included. 5 March 5, 2018 SolarPower Europe
Corporate PPAs in Europe are limited to a select group of countries EMEA corporate PPA volumes, by country GW 1.1 1.1 0.8 0.5 0.1 0.8 0.6 0.1 0.4 0.1 0.1 0.1 0.1 0.1 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Nordics Netherlands United Kingdom Other Source: Bloomberg New Energy Finance Note: Onsite PPAs not included. 6 March 5, 2018 SolarPower Europe
What has catalysed corporate PPA activity in Europe? Double compensation Netherlands corporate PPA volumes, by technology MW SDE+ United Kingdom corporate PPA volumes, by technology MW RO expiration 211 207 198 179 126 141 63 77 60 25 6 5 0 12 2 2008 9 10 11 12 13 14 15 16 17 Solar Wind Biomass & Waste 2008 9 10 11 12 13 14 15 16 17 Solar Wind Biomass & Waste Source: Bloomberg New Energy Finance Note: Onsite PPAs not included. 7 March 5, 2018 SolarPower Europe
What has catalysed corporate PPA activity in Europe? Integrated markets Nordics corporate PPA volumes, by technology U.S. PPAs, by technology (color) and capacity (bubble size) Annual volume (MW) 764 600 419 63 82 62 2008 9 10 11 12 13 14 15 16 17 Wind Other Source: Bloomberg New Energy Finance Note: Onsite PPAs not included. 8 March 5, 2018 SolarPower Europe
A diverse group of European companies have committed to the RE100 European-domiciled RE100 share of electricity demand supplied by renewables, by industry classification (bubble color) and market capitalization (bubble size), 2016 Renewable share 120% 100% H&M 80% 60% 40% 20% Novo Nordisk Carlsberg HSBC Anheuser-Busch InBev Telefonica Nestle Akzo Nobel 0% 0 1 2 3 4 5 6 7 8 9 10 Manufacturing Consumer Staples Technology Materials TWh Financials Food and Beverage Communications Healthcare Source: Bloomberg New Energy Finance, Bloomberg Terminal, The Climate Group Note: Renewables share includes unbundled certificate purchasing and utility contracts. 9 March 5, 2018 SolarPower Europe
These companies will have a Belgium-sized renewable electricity shortfall by 2030 Europe-domiciled RE100 supply-demand fundamentals TWh 100 50 13 19 25 30 34 39 43 48 52 56 59 63 67 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Wind (contracted) Solar (contracted) Certificate purchases Onsite generation Renewable shortfall Electricity demand Renewable electricity demand Source: Bloomberg New Energy Finance, Bloomberg Terminal, The Climate Group Note: Certificates includes utility contracts and unbundled guarantees of origin. Certificates assumed to step down 10% each year, while contracted solar, wind and onsite generation remain steady through 2030. 10 March 5, 2018 SolarPower Europe
Copyright and disclaimer This publication is the copyright of Bloomberg New Energy Finance. No portion of this document may be photocopied, reproduced, scanned into an electronic system or transmitted, forwarded or distributed in any way without prior consent of Bloomberg New Energy Finance. The information contained in this publication is derived from carefully selected sources we believe are reasonable. We do not guarantee its accuracy or completeness and nothing in this document shall be construed to be a representation of such a guarantee. Any opinions expressed reflect the current judgment of the author of the relevant article or features, and does not necessarily reflect the opinion of Bloomberg New Energy Finance, Bloomberg Finance L.P., Bloomberg L.P. or any of their affiliates ("Bloomberg"). The opinions presented are subject to change without notice. Bloomberg accepts no responsibility for any liability arising from use of this document or its contents. Nothing herein shall constitute or be construed as an offering of financial instruments, or as investment advice or recommendations by Bloomberg of an investment strategy or whether or not to "buy," "sell" or "hold" an investment. 11 March 5, 2018 SolarPower Europe
Bloomberg New Energy Finance is a research firm that helps energy professionals generate opportunities. With a team of experts spread across six continents, BNEF provides independent analysis and insight, enabling decisionmakers to navigate change in an evolving energy economy. BNEF research and analysis is accessible via web and mobile platforms, as well as on the Bloomberg Terminal. Coverage. Renewable Energy Power & Utilities Gas Carbon Markets & Climate Negotiations Energy Smart Technologies Storage Electric Vehicles Mobility and Autonomous Driving Frontier Power Emerging Technologies sales.bnef@bloomberg.net about.bnef.com @BloombergNEF Kyle Harrison kharrison17@bloomberg.net