According to an analysis by BloombergNEF (BNEF), the purchase of corporate renewable power energy (PPAs) grew 40 percent last year in comparison to 2018. In its’ 1H 2020, Corporate Energy Market Outlook ‘, BNEF stated that in 2019 more than 100 companies in 23 different nations signed clean energy PPAs with a total capacity of 19,5GW.
This led to 13.6GW in 2018, which is more than three times that recorded in 2017. PPAS was signed with the agreement to cost $20 billion to $30 billion in growth and construction, and the amount was 10% of all sustainable energy resources installed worldwide last year.
“Corporations have been buying more than 50GW of renewable energy since 2008.”BNEF Sustainability Strategist Jonas Rooze stated. “The accumulations of companies such as Vietnam and Poland are larger than that power generation.”
The technology firms further controlled the clean power procurement sector, BNEF said. “Such consumers re-shape the electricity markets and business strategies of energy firms around the globe.” For Facebook’s 1.1GW, Amazon’s 900MW, and Microsoft’s 800MW last year, Google signed deals to acquire about 2.7GW in 2019 in clean energy worldwide.
BNEF has reported that the petroleum and gas industries are signing clean power agreements. All of these solar contracts were negotiated by the Occidental Petroleum, Chevron, and Energy Transfer Partners in 2019 in line with ExxonMobil, which started the phenomenon by negotiating two 575MW PPAs by the end of 2018.
“The clean energy holdings of some of the largest corporate customers are equivalent to those of the world’s largest utilities,” said Kyle Harrison, chief author of the report. “These corporations are faced with rising investor pressure to de-carbonate–clean-energy deals that help diversify their energy expenditure and lower sensitivity to tangible climate change risks.” PPAs totaled 15.7GW in the American continent last year with a bulk (13.6GW) of US products.
More than 80 percent of these agreements in the USA were technological PPAs–digital contracts that only can be reached in deregulated economies, observers estimated. The majority of the 2.4GW is sold under green tariffs provided by businesses on regulated markets, says BNEF.
The best periods for PPAs have also been reported in Europe, the Middle East, and Africa (EMEA) and Latin America, respectively, with 2.6 GW and 2GW.
Nearly half of European companies have been from Sweden, Norway, Finland, and Denmark, but also for the first time agreements have been created in Portugal, Germany, France, and Italy. BNEF reported that two offshore wind deals had been signed by companies in Germany, reflecting the potential trends of local buyers. The biggest markets in Latin America were Brazil and Chile.