PPA Market Expands as Buyers Increasingly Eye GHG Protocol Revision

As corporate interest in PPAs grows, private matching platforms are emerging as an additional procurement channel. Digital Grid’s off-site PPA matching platform, RE Bridge, recently announced the results of its eighth matching event. For generators and offtakers that successfully entered commercial discussions, both groups’ average target PPA price was JPY 15.2/kWh, down JPY 2.7/kWh from the previous (seventh) event. According to Digital Grid, the decline in target PPA prices resulted from companies considering procurement through physical PPAs being matched with non-FIT (Feed-in-Tariff) projects.

The total number of registered generators declined from 414 in the previous event to 320, but the combined offered capacity increased from 1.92 GW to 2.03 GW, including hydropower and solar. The event resulted in 23 matches, one more than the previous event, totaling 67 MW, an increase of approximately 16 MW.

As in the previous event, rooftop solar projects matched with corporate offtakers seeking power with a low environmental impact, especially those anticipating the revision of the GHG Protocol. Many offtakers also sought power plants capable of generating renewable electricity at night, reflecting an increased focus on physical PPA procurement and hourly matching of renewable electricity procurement and consumption.

🔍 Shulman Commentary:

Participant behavior on private matching platforms can reflect broader market trends. The growing focus on hourly matching suggests increasing corporate attention to the anticipated revision of the GHG Protocol. This may signal a wider shift toward renewable procurement that considers when and where electricity is generated, rather than focusing solely on annual volumes.

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