Corporations–including supervisors in the oil & gas sector–purchased nearly 20 GW of wind and solar capacity via power purchase arrangements (PPA) last year, a 44% jump on 2018, with several gears moving to one of the main developments of the global energy transformation, Bloomberg New Energy Finance (BNEF) as recent figures reveal.
The research analyst’s 1H 2020 Corporate Business Outlook for electricity estimates that in 2019 more than 100 businesses in 23 nations, up from 13.6 GW in 2018, and more than three times more than in 2017, negotiated renewable energy contracts in 23 different countries.
The 2019 amounts contributed to about 10% of the overall renewable energy resources installed worldwide last year, according to BNEF, which will cost between $20-30 trillion for the projects under consideration.
“Since 2008, companies have bought more than 50GW of clean energy. That is greater than the vessels in power generation in countries such as Vietnam and Poland. Such consumers form electricity markets and energy companies ‘ business models worldwide, “says BNEF Sustainability Analyst Jonas Rooze.
The clean energy procurement market, headed by Google, which negotiated PPAs last year for over 2.7GW worldwide, completely dominated, and in the September period purchased nearly 2GW of renewable energy in six countries – a corporation’s most significant single announcement ever.
“Clean energy holdings of some of the largest business customers surpass those of the world’s greatest utilities,” said Kyle Harrison, a BNEF sustainability expert. Such companies are faced with the investment demand for decarbonization–clean energy deals help to diversify energy expenditure and decrease vulnerability to measurable climatic danger.
“The gateway to new global markets beyond the Nordics has been significant in EMEA. Although almost half the industry still has come from Sweden, Norway, Finland, and Denmark, companies in markets like Spain, Poland, France, and Italy are also beginning to agree to long term clean power agreements for the first time. “Rooze said.
Although company PPA activities in Asia-Pacific (APAC) declined in 2019, BNEF said that there is still much excitement in that area. The study referred to the solar project in Australia, providing electricity to businesses nearly doubling to 1GW. At the same time, China’s newly-enforced green portfolio requirements also allow large power users to reach specific amounts of demand for clean energy.
Analysts stress that 63 companies have developed a 2019′ RE100′ plan, which promises 100 percent clean energy to offset their demand for electricity, as set out in the RE100 initiative of The Climate Group. The RE100 currently includes 221 members and, according to their last submissions, uses up 233TWh of electricity in 2018.
BNEF computes that the membership of RE100 is going to have to purchase another 210 TWh of renewable power in 2030 to achieve its objectives. “If the shortage of offsite PPAs were resolved, the projected 105 GW of additional solar and wind power production would be catalyzed worldwide. It is expected that these new additions will take a further $98bn to finance, “Harrison said.