Has the PPA played a key role in the energy transition?
Jérôme Malka: It is certainly a significant tool. Major companies, such as the Tech Giants (GAFAM) have already seized the opportunity. These contracts make it possible to develop renewable energy production installations, giving visibility on energy prices over the medium to long term. In the past, only public support mechanisms played this role. Another way of seeing it is that PPAs support and complement public authorities.
Continued advances in the performance of renewable production technologies have been mirrored by a continued downward trend in costs.
Throughout the world, public authorities have kick-started the renewable sector using incentives and setting roll-out targets for renewable capacity. As a consequence of this direction, renewable energy costs have been falling in many different countries over the last 10 years. We are seeing lower risk premiums on these technologies (solar, wind, etc.) as well as intense competition in equipment manufacturing (wind turbines, solar panels, etc.).
At the same time as costs are decreasing, we are seeing an increase in sustainability policies within companies.
This last decade has taught us a lot about the climate and biodiversity. A significant number of companies have acted upon these issues to assert their sustainable development targets with their stakeholders, including controlling their carbon emissions.
In summary, over these past 10 years, we have seen an increase in PPAs in addition to public assistance with renewable energy, a decrease in the cost of renewable electricity and a corporate commitment to sustainability. This combination has led ENGIE to offer long-term green energy contracts to its customers - Green PPAs-, which play a key role in the energy transition.