Contract Transparency

The Issue

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.

PPA Transparency in 2 Minutes

Watch our quick video to learn why PPA transparency is needed to meet the world’s climate goals & the energy needs of billions.

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 is advocating for global disclosure standards for PPAs to raise the governance bar. We urge governments to publish and disclose contracts, and for investors and developers to agree to minimum disclosure standards.

PPA Watch, an initiative of the Energy for Growth Hub, advocates for the creation of a new standard for power contract transparency to accelerate reliable, clean energy.