Renewable Energy PPA Outlook | Renewables Watch Blog
In our recent Renewables Watch Whitepaper, ESAI examines the historical trends and prospects for continued growth in the procurement of renewable energy by corporate entities. In recent years, corporate greenhouse gas reduction and renewable energy goals have led to contracts between corporate entities and owners of renewable generation facilities totaling more than 64 GW across the United States. While this capacity is significant, there remains additional headroom for corporate contracts as the generation associated with the capacity currently under contract accounts for only 7% of the total U.S. commercial and industrial load.
We also examined corporate carbon reduction and renewable energy goals. For corporations with these goals, there are wide variations in the nature of these commitments. For this analysis, ESAI focused on large technology companies and found that most, including Google, Facebook, and Apple, have adopted net-zero emissions by 2030 and 100 percent renewable energy goals. For renewable energy goals, most corporations “match” their total electricity consumption with renewable energy production.
Potential for Continued Growth in Corporate Contracts in the US
To estimate the potential for growth in U.S. corporate PPA activity, ESAI subtracted the total approximate operational solar and wind generation currently under corporate contract from the total 2021 commercial and industrial demand. Our whitepaper shows the percentage of commercial and industrial load currently under a corporate renewable PPA is 7.0 percent (3.8 percent from solar and 3.2 percent from wind). ESAI anticipates this percentage to increase going forward.
To download a complete copy of our PPA Historical Trends & Outlook Whitepaper, go to our PPA Trends and Outlook page.
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ESAI Power evaluates the renewable energy issues, markets and trends in the PJM, New York, and New England market footprints. Coverage includes solar, onshore and offshore wind, hydroelectric, and storage. For each region, ESAI Power details the regulatory and market factors that impact the supply and demand balance for Class I Renewable Energy Credits (RECs) and projects the supply and demand balance of Class I RECs through 2030.
Download our White Paper
Download our Renewables WatchTM white paper as we examine how the prevalence of power purchase agreements (PPAs) between corporations and renewable plant owners has increased in the past decade. We take a deep dive into the historical trends and prospects for continued growth in the procurement of renewable energy by corporate entities. In recent years, corporate greenhouse gas reduction and renewable energy goals have led to contracts between corporate entities and owners of renewable generation facilities totaling more than 64 GW across the United States. While this capacity is significant, there remains additional headroom for corporate contracts as the generation associated with the capacity currently under contract accounts for only 7 percent of the total U.S. commercial and industrial load.
Sample Renewables Watch Issue 1
ESAI Power recently completed its inaugural issue of ESAI’s Renewables WatchTM. This is the first of a quarterly series covering ongoing developments in clean energy and renewable power. Renewables WatchTM brings the same detailed coverage the ESAI Power team has provided for the energy, capacity, and emissions allowance markets to the renewable energy sector. Subscribers to Renewables WatchTM receive quarterly updates about the supply and demand balance for renewable energy and ESAI Power’s forecast for renewable energy credit (REC) prices in PJM, ISO-NE & NYISO.
