A new report from Moody’s Investors Service says that state renewable portfolio standards are no longer main driver of renewable energy demand. Instead new market participants including corporate power purchase agreements (CPPAs) and community choice aggregators (CCAs) have emerged as near-term drivers of demand for solar photovoltaic, wind and other renewable energy systems.
Citing dramatic declines in the costs of renewable generation capacity, economics are now attractive enough to spur demand from entities eager to "green" their power supply, Moody’s said in the report, "US Power & Utilities: Economics, End-User Sustainability Policies Drive Renewables in a post-CPP World," which details the convergence of the supply of cheap renewable power and the new demand from CPPAs and CCAs.
“Tax credits and ongoing equipment cost reductions have driven wind and solar generation costs down to historic lows,” said Lesley Ritter, an analyst at Moody’s, in a press release. “At the same time, we're seeing a variety of organizations make significant sustainability commitments.”
Moody’s press release about the report is available here: