The global market for corporate procurement of renewable energy from utility-scale, offsite renewable energy projects is expected to reach USD 15.6 billion (EUR 13.4bn) by 2027, Navigant Research said today.
Asia Pacific is projected to be the largest regional market, with annual power capacity and revenue of 9.2 GW and USD 7.9 billion by 2027. It would be followed by North America with 2.7 GW and USD 3.1 billion in 2027.
Many large multinational corporations, universities and municipalities go beyond onsite renewables as they seek to reduce their greenhouse gas emissions. To meet both sustainability and energy spending targets, these corporate buyers pursue innovative transaction models to buy renewable energy from utility-scale offsite projects, the firm said.
The new renewable energy transaction models will also will help mitigate project bankability risks for project developers, given that renewable energy projects are increasingly required to compete with traditional generation sources, noted William Tokash, senior research analyst with Navigant.
The market research firm cautioned that the expected market growth is dependent on the emergence of flexible contracting mechanisms that allow for the creditworthy benefits of a corporate buyer to be recognised by project developers and independent power producers (IPPs).
(USD 1 = EUR 0.857)
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