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Corporate PPA: Verizon signs PPAs for 410 MW of new renewables projects, surpassing 3 GW of contracted capacity in the US

image credit: Enerdatics
Mohit Kaul's picture
Founder Enerdatics

Building Enerdatics. Leadership experience in a high growth SaaS company and secured a successful exit. A natural leader who cares about creating value for all stakeholders. Extensive experience...

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The telecommunications company has signed four new corporate power purchase agreements (PPAs) for projects in the ERCOT, SPP, and PJM power markets. Two of the PPAs, signed with Invenergy, cover the supply of 240 MW from two projects, while another deal involves 100 MW of contracted capacity under a 12-year PPA with Enel. Most of the projects linked to the agreements became operational in 2022. Since 2019, Verizon has signed 24 PPAs for more than 3 GW of projected renewable energy capacity, enabling the company to meet its goal of satisfying 50% of its total annual electricity consumption with clean power, by 2025. By 2035, Verizon aims to reach net-zero emissions across its emissions. To date, 880 MW of capacity contracted by Verizon is operational.

Verizon is funding its PPAs with proceeds from its fourth green bond issue, announced in Mar’22, for an aggregate principal amount of $1bn. The move represented its fourth billion-dollar green bond issue since 2019. BofA Securities, Loop Capital Markets, Ramirez & Co, and Siebert Williams Shank served as underwriters for the issue. Proceeds from the bond will be allocated entirely toward renewable energy investments. The issue followed a Feb’22 announcement by Verizon, in which the company highlighted the full allocation of the net proceeds from its third $1bn green bond, towards 910 MW of new renewables capacity across seven states, comprising 51% wind energy and 49% solar power. The company’s energy usage is concentrated in the PJM, ERCOT, CAISO, and MISO power markets.

As per Enerdatics research, telecom companies in the United States contracted nearly 6 GW of renewable energy since 2019, with Verizon leading the pack, accounting for ~50% of the total capacity. AT&T, Sprint, and T-Mobile are the other major telecom off-takers. The PPAs were primarily long-term and were linked to offsite utility-scale wind and solar facilities that were under development or in construction. While tech giants such as Amazon, Google, Meta, and Microsoft drive corporate power procurement in the country, Enerdatics forecasts greater growth from the industrial, retail, and telecom sectors in the coming years, driven by aggressive decarbonization targets and greater costs savings provided by renewable energy plants.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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