Global Market for Corporate Renewable Procurement Estimated to Grow to Nearly 1,800 Terawatt Hours by 2032; Unbundled EACs Will Account for Over 70% of Capacity
Market drivers include corporate ESG goals, customer and client demands, energy cost savings and price stability
A new report from Guidehouse Insights evaluates the current and future market for corporate renewable procurement. In today’s market, companies can use four primary methods companies to procure energy: self-generation, power purchase agreements (PPAs), green tariffs, and unbundled energy attribute credits (EACs).
Corporations have been procuring renewable energy to meet a portion of their energy consumption for more than a decade, with many organizations already matching 100% of their annual energy consumption with renewable energy. According to a new report from Guidehouse Insights, the global market for corporate renewable procurement is expected to grow from 846.8 terawatt hours (TWh) in 2023 to 1,760.6 TWh in 2032. Unbundled EACs will continue to dominate the market, accounting for over 70% of capacity in 2032.
“Many corporations pursue renewable procurement to demonstrate commitment to environmental, social, and governance (ESG) goals, satisfy client and customer demand for sustainable products and services, and reduce energy costs,” says Hannah Bastian, research analyst with Guidehouse Insights. “Corporate renewable procurement can also provide societal benefits, such as helping renewable projects receive financing that might otherwise go unfunded.”
Similarly, corporations can commit to purchase energy from projects that align with their values, including those in areas with a carbon-intensive grid or in energy-insecure communities. Still, many market barriers persist today, including a competitive market, complex contracts with long negotiation periods, and a lack of standards, according to the report.
The report, Corporate Renewable Procurement Strategies, analyzes the global market for corporate renewable energy procurement in three key segments: PPAs, green tariffs, and unbundled EACs. It looks at market drivers and barriers, and reviews emerging market trends driven by ESG goals including additionality, emissionality, and 24/7 carbon-free energy. Global market outlooks for capacity and revenue extend through 2032, segmented by region and energy type. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Corporate Renewable Procurement Strategies, is a summary and reflects the current expectations of Guidehouse Insights 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 Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.