Corporations bought a document of 23.7 GW of unpolluted vitality in 2020, up from 20.1GW in 2019 and 13.6GW in 2018, in accordance with new analysis printed by BloombergNEF (BNEF).
The improve got here regardless of a 12 months devastated by the Covid-19 pandemic, a world recession and uncertainty about U.S. vitality coverage forward of the presidential election.
The evaluation is introduced in BNEF’s newest report, 1H 2021 Corporate Energy Market Outlook. It exhibits that clear vitality contracts had been signed by greater than 130 corporations in sectors starting from oil & gasoline to massive tech. Underpinning the market is surging stakeholder curiosity in company sustainability and increasing entry to wash vitality globally.
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The U.S. was as soon as once more the most important market, however was much less dominant than in earlier years. Companies introduced 11.9 GW of company PPAs within the U.S. in 2020, down from 14.1 GW in 2019 – the primary year-on-year drop since 2016. The first half, coinciding with the beginning of the pandemic, was notably subdued, with corporations asserting simply four.three GW of company PPAs within the U.S. in that interval.
Kyle Harrison, BNEF senior affiliate and the lead creator of the report, commented: “Corporations confronted a wave of adversity in 2020 – inner company features had been disrupted on the outset of the pandemic, and lots of corporations noticed revenues plummet as world economies buckled. Question marks earlier than – and after – the U.S. election additional difficult long-term decision-making for corporations. To not solely preserve, however develop, the clear vitality procurement market underneath these circumstances is a testomony to how excessive sustainability is on many firms’ agendas.”
Region by Region
In Latin America PPA volumes dropped from 2G W in 2019 to 1.5G W in 2020. The area was hit onerous by the Covid-19 pandemic and the financial downturn. Yet corporations in Brazil signed a document 1,047 MW of company PPAs in 2020, as many continued emigrate to the nation’s free market, the place they’ll signal bilateral clear vitality contracts instantly with builders.
Once the principle draw for company procurement within the area, Mexico noticed deal volumes all however dissipate, as the present administration continues to undermine the nation’s clear vitality sector.
While the U.S. and Latin America slipped again, different company procurement markets stepped up, stated BNEF. Corporate PPA volumes within the Europe, Middle East and Africa (EMEA) area rose from 2.6 GW in 2019 to a document 7.2 GW in 2020. In Spain, corporations introduced contracts to buy four.2 GW of unpolluted vitality, up from 300 MW the earlier 12 months. Solar and wind initiatives in Spain yield among the least expensive and best costs in Europe, due to robust pure sources and a big pool of skilled builders, in accordance with BNEF. Further, corporations like Total and Anheuser Busch are orchestrating ‘cross-border digital PPAs’ in Spain, shopping for clear vitality within the nation to offset their load elsewhere in Europe.
Corporations additionally bought document clear vitality volumes within the Asia Pacific (APAC) area, asserting contracts for two.9 GW of photo voltaic and wind. In a primary, Taiwan firms signed PPAs totalling 1.25 GW. Taiwan’s market must be supported by a brand new coverage that requires corporations with an annual load above 5 MW to purchase clear energy. Also, the island has a excessive focus of enormous producers, a lot of that are feeling stress from their clients to decarbonize.
South Korea is predicted to be the subsequent main company procurement market in Asia. Policymakers revised the nation’s Electric Utility Act to start with of 2021, making a PPA mechanism and a inexperienced tariff program with Korea Electric Power Corporation. The revision can even permit corporations to buy unbundled…