The length of Power Purchase Agreements (PPAs) for biomass energy in the US has shown a steady increase from 2024 to 2028, based on forecast data. In 2023, the average PPA length stood at 22 years. The annual year-on-year percentage increase is consistent at approximately 4.35% from 2026 to 2028, marking a general upward trend. The compound annual growth rate (CAGR) over the forecasted five-year period is about 2.68%, indicating a modest but steady expansion in PPA lengths.

Future trends to watch for include:

Potential policy changes influencing renewable energy adoption which could affect PPA lengths.
Technological advancements in biomass energy efficiency that may lead to longer contract terms.
Market dynamics, such as changes in investor confidence and energy market competition, impacting PPA durations.