PPA Transparency

PPA Watch, an Energy for Growth Hub initiative, advocates for greater contract transparency in the power sector. The site serves as a platform to host country transparency rankings and data collection on Power Purchase Agreements (PPAs), case studies on country disclosure, and resources for relevant actors to advocate for better transparency.

Problem

The world’s climate future hinges on whether global clean energy markets can rapidly scale, especially in emerging and frontier economies. Competitive markets can accelerate deployment, drive prices down, and reduce risks.

But electricity contracts in emerging markets are often negotiated behind closed doors and the details kept from the public – despite many of these contracts involving public money and liabilities. Secrecy significantly slows clean energy deployment and puts our climate goals in jeopardy. Nontransparent contracts can also lead to overpayment, financial losses, systemic imbalances in delivery and demand, and higher investment and governance risks.

Relevance

Greater disclosure – as for sovereign debt or oil contracts –  could incentivize competitive pricing, lower risks for governments and investors, and enhance the public’s ability to hold leaders accountable for a core public service. Transparency will also help to turbocharge clean energy markets across emerging economies.

Our Approach

The Energy for Growth Hub through the PPA Watch initiative is advocating for global disclosure standards for PPAs to raise the governance bar. Visit PPA Watch for more.