The Global Market for Corporate, Utility-scale Offsite Renewable Energy Procurement Is Expected to Reach $15.6 Billion by 2027
The anticipated growth of this market is dependent on the emergence of flexible contracting mechanisms.
A new report from Navigant Research examines the global market for corporate buyers’ procurement of renewable energy from utility-scale, offsite renewable energy (ORE) projects through 2027.
To reduce greenhouse gas emissions, many large multinational corporations, universities, and municipalities, referred to as corporate buyers, are going beyond installing onsite renewable energy systems and engaging in innovative transaction models to procure renewable energy from utility-scale offsite renewable energy (ORE) projects. These models can help corporate buyers meet sustainability and energy spend reduction goals while reducing power market risks for project developers and independent power producers (IPPs). According to a new report from @NavigantRSRCH, the global market for corporate, utility-scale ORE procurement is expected to reach $15.6 billion by 2027.
“Renewable energy project developers and IPPs are increasingly required to compete with traditional electricity generation sources, and the resulting uncertainties in long-term income streams will affect the bankability of renewable energy projects,” said William Tokash, senior research analyst with Navigant. “These new renewable energy transaction models will not only help corporate buyers meet their sustainability and energy spend reduction goals, but will over time will help mitigate project bankability risks for project developers and IPPs.”
Asia Pacific is expected to be the largest region for utility-scale ORE procurement, where annual power capacity and revenue are forecast to reach 9.2 GW and $7.9 billion by 2027. The second largest region is projected to be North America, which is expected to reach 2.7 GW and $3.1 billion in 2027. The anticipated growth of these markets is dependent on the emergence of flexible contracting mechanisms that allow for the creditworthy benefits of a corporate buyer to be recognized by project developers and IPPs.
This Navigant Research report, Corporate Utility-Scale Offsite Renewable Energy Procurement Solutions, analyzes the global market for corporate utility-scale ORE procurement solutions. The study examines the key drivers, barriers, and transaction models related to corporate buyers’ procurement of renewable energy from utility-scale ORE projects. Four transaction models are covered: virtual (physical) power purchase agreements (PPAs), virtual (financial) PPAs (also known as contracts for difference, or CFDs), green direct access tariffs, and community renewables. Global market forecasts for power capacity and revenue, segmented by generation type (solar PV and wind), transaction model, and region, extend through 2027. The report also examines the regional market landscapes, future market developments, and trends for the procurement of renewable energy from utility-scale ORE by corporate buyers. An Executive Summary of the report is available for free download on the Navigant Research website.
* The information contained in this press release concerning the report, Corporate Utility-Scale Offsite Renewable Energy Procurement Solutions, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
Source: navigantresearch
