Global corporate clean energy procurement maintains momentum in 2024

Corporate procurement has been a key driving force of renewables uptake globally. In 2023, corporate power purchase agreements unleashed 25% of wind and solar capacity additions globally, outside mainland China, compared to 5% in 2015. North America emerged as the frontrunner, with US-headquartered companies playing a pivotal role as early adopters.

As of this year, corporate renewable procurement capacity continues to show momentum, with 15.8 GW contracted in the first quarter, growing 36% year on year. Europe led in capacity, while the Asia-Pacific region led in the number of deals. In terms of countries, corporates have been particularly active in the US, Australia and India. Looking at the regions in more detail:

• In Europe, the corporate procurement market grew 35% year-on-year in the first quarter and 73 deals were secured, totaling 5.4 GW, surpassing the 41 deals tracked in the same period in 2023. Spain, Germany and the UK led in announcements.
• In the Asia-Pacific region, there was 31% year-on-year growth, with companies disclosing 5.4 GW of corporate renewable contracts in Q1. Australia and India accounted for 80% of the announcements.
• In North America, companies signed 3.6 GW of corporate clean energy procurement deals, all in the US, growing by 58% year on year. The region saw a dynamic Q1 in corporate procurement, exhibiting emerging contracting technology, new deal structures and diverse procurement options.

Solar photovoltaic (PV) was the preferred technology for corporate contracting globally, accounting for half the deals in Q1. Offshore wind gained popularity in Europe and hit a quarterly high of 1.7 GW, contributing to 30% of the regional capacity signed. In the US, corporations continued to enter PPAs with nuclear projects.

The mineral extraction sector ranked second in corporate clean energy procurement, followed by manufacturing. The surge in mineral extraction sector PPAs was largely due to deals signed by Rio Tinto in Australia. In Asia-Pacific, the manufacturing sector retained momentum, while the services sector lowered procurement by 0.6 GW quarter over quarter. The services sector, led by technology, remained the dominant force in North America and contributed nearly 40% of the deals in Europe.

The green energy attribute markets remained active across most regions in Q1, with price weakness observed in major markets. In Europe, demand for the EU guarantee of origin (GO) was muted in the first quarter, down by 1%, due to multiple factors such as the phaseout of EU GOs in the UK, prolonged validity of certificates in Italy and weakened energy demand due to persistent economic stagnation, as well as a mild winter. At the same time, issuance grew by 23% year on year, largely due to the expansion of wind supply. As a result, EU GO prices continue to face downward pressure, especially for 2024 vintage certificates.

The international renewable energy certificates market continued to expand, with 43 TWh of redemption growth (72%). Quarterly redemption hit a new record high, with hydro accounting for 52% of demand growth, and the UAE, mainland China and Chile led in demand growth. Issuance was also up by 40 TWh (or 54%), contributing to lower prices in key markets.

To learn more about our corporate renewable procurement research, visit our Clean Energy Procurement page .