[CDx Launch Session Summary] Fishbowl 11: Negotiating PPAs and Renewable Energy Procurement

The session highlighted the evolving landscape of renewable energy strategies in Southeast Asia. George Krizza Kiongson, Project Manager at Mt. Stonegate Green Asset Management, emphasized the importance of tailoring PPAs to corporate sustainability targets, with off-site PPAs emerging as vital options for companies with limited on-site capabilities. She noted the abundant solar and wind resources in the region as key enablers for achieving decarbonization goals.

Marlon Apanada of the Asia Engine for Net Zero (AENZ) underscored the need for market liberalization and credible renewable energy transactions, particularly in regulatory environments that constrain corporates to rely on low-quality RECs. Madura Wataganase from USAID Smart Power Program introduced the Competitive Procurement Center (CPC), which offers resources like procurement templates and REC guidelines to simplify the renewable energy landscape for SMEs and corporates alike.

Eric Chan of Allotrope Partners highlighted the regulatory complexities in markets like Indonesia, where shifting rules and state utility controls present significant barriers. He stressed the importance of early stakeholder engagement to overcome inefficiencies in energy procurement. Amy Chiang of 3Degrees showcased aggregated PPAs as a successful model for enabling SMEs to pool resources and negotiate better terms, aligning smaller players with broader sustainability objectives.

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Key Takeaways

· Short-Term PPAs and Flexibility: Shorter-term PPAs (5-10 years) are gaining traction, reflecting the need for adaptability in uncertain markets.

· Tailored Strategies: Off-site PPAs and aggregated models provide effective solutions for corporates and SMEs with limited renewable energy access.

· Regulatory Challenges: In markets like Indonesia, regulatory frameworks often hinder renewable energy adoption, requiring proactive engagement and policy reform.

· Utility Collaboration: Utilities can either enable or restrict renewable energy progress, underscoring the need for strategic engagement to align interests.

· Role of Aggregated PPAs: Pooling resources through cohort models simplifies procurement for SMEs, offering access to large-scale renewable projects and reducing costs.

· Private Sector Influence: Corporations with ambitious sustainability targets can drive regulatory and policy shifts, particularly when aligning demands with government energy goals.

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