🧃Big Business, Bigger Batteries

Welcome to The Strawman, the daily climate newsletter that’s watching the world's energy transition like a hawk.

Today’s topic? How some of the biggest companies on the planet are quietly becoming the new backbone of renewable energy, while governments start turning off the subsidy taps.

Big Business, Bigger Batteries

It turns out that when governments tighten the purse strings on renewables, big corporations are more than happy to pick up the slack—so long as they get a good deal. The amount of renewable electricity sold through long-term power purchase agreements (PPAs) rose by a whopping 35% last year, with tech giants like Amazon leading the charge.

Why? Data centres are energy-hungry beasts, and companies like Amazon, Google, and Microsoft want to run them on clean power. But it’s not just Silicon Valley. Sectors like chemicals, mining, and raw materials—industries that rely on massive amounts of energy—are signing deals to secure stable electricity prices while keeping their emissions in check.

No Free Rides in the Wind Farm

If you're a renewables developer, the world is looking a little less rosy right now. After years of government incentives, some countries are rolling back subsidies and letting the market figure things out. Denmark recently canceled offshore wind auctions because no companies wanted to build projects without financial support.

Renewables execs, like RWE’s Markus Krebber, are clear: No long-term contracts, no new wind farms. Without guaranteed buyers, financing costs soar, and projects stall. That’s why many developers are now insisting that corporate customers sign decade-long PPAs before they even start building. Otherwise, those giant wind and solar farms we need? They’re not happening.

From Tech Giants to Dairy Kings

While Big Tech is the usual suspect in these energy deals, there are some unexpected players jumping in. Arla, the world’s fifth-largest dairy company, has signed five new PPAs, ensuring that most of its European operations run on newly built wind and solar farms.

And it's not just about sustainability—companies like Unilever are using PPAs to lock in predictable energy prices, shielding themselves from market volatility. It’s a win-win: Developers get the financial security they need, and corporations get clean energy without the sticker shock of fluctuating electricity costs.

The Strawman’s Takeaway

PPAs are still a small piece of the renewables puzzle, but as subsidies dry up, they’re becoming a crucial one. If governments won’t foot the bill for clean energy, companies looking for stable power prices and sustainability credentials are stepping in.

Turns out, when push comes to shove, capitalism can be good for the climate—so long as there’s a solid contract involved.

See ya tomorrow!