All Reports
3Q 2023

Corporate Renewable Procurement Strategies

Corporate Power Purchase Agreements, Green Tariffs, and Unbundled EACs, Global Market Analysis and Forecast: 2023-2032

For more than a decade, corporations have been procuring renewable energy to meet a portion of their energy consumption, with many companies currently matching 100% of their energy demand with renewable supply. 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. 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.

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 often use more than one of these methods to create a diversified procurement portfolio. The methods they choose depend on internal factors such as budget, risk tolerance, motivations (i.e., cost savings and ESG goals), and energy demand. They may also consider external factors such as the conditions in the areas they operate: available renewable energy, local regulations, and local energy costs.

This Guidehouse Insights report 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 forecasts for capacity and revenue extend through 2032, segmented by region and energy type.

Pages 39
Tables | Charts | Figures 31
  • What are the most common methods that corporations use to procure renewable energy in each region?
  • What is the expected revenue from renewable procurement over the next decade?
  • What are the most common types of renewable energy procured by corporations?
  • What are additionality, emissionality, and 24/7 carbon-free energy—the latest trends in corporate renewable procurement?
  • In which regions will the market for corporate renewable procurement grow over the next decade?
  • Corporations
  • Wind energy suppliers
  • Solar energy suppliers
  • Corporate renewable procurement advisors
  • Corporate renewable procurement brokers
  • Renewable energy financers
  • Policymakers
  • Energy market regulators

1. Executive Summary

1.1   Introduction

1.2   Market Drivers

1.3   Market Barriers

1.4   Market Forecast

2. Market Issues

2.1   Market Overview

2.2   Regulations and Regional Markets

2.3   Market Drivers

2.3.1   ESG Goals

2.3.1.1   Additionality

2.3.1.2   24/7 Carbon-Free Energy

2.3.1.2.1   Case Study: PJM Hourly RECs

2.3.1.3   Emissionality

2.3.1.4   Environmental Justice

2.3.2   Customer and Client Demands

2.3.2.1.1   Case Study: Iron Mountain

2.3.3   Energy Cost Savings and Price Stability

2.4   Barriers

2.4.1   Competitive Market Currently Favors Renewable Project Developers

2.4.2   Complex Contracts with Long Negotiation Periods

2.4.3   Lack of Standards

3. Industry Value Chain

3.1   Mapping the Corporate Renewable Procurement Market

3.2   Partnerships

3.2.1   Case Study: Walmart and Schneider Electric

3.2.2   Case Study: McDonalds and Enel Group

4. Market Forecasts

4.1   Methodology

4.2   Global Forecasts

4.3   North America

4.4   Europe

4.5   Asia Pacific

4.6   Latin America

4.7   Middle East & Africa

5. Conclusions and Recommendations

5.1   Four Big Takeaways

5.2   Recommendations

5.2.1   Corporations

5.2.2   Brokers and Advisors

5.2.3   Governments

6. Acronym and Abbreviation List

7. Table of Contents

8. Table of Charts and Figures

9. Scope of Study, Sources and Methodology, Notes

  • Corporate Renewable Procurement Capacity by Contract Type, World Markets: 2023-2032
  • Corporate Renewable Procurement Revenue by Contract Type, World Markets: 2023-2032
  • Corporate Renewable Procurement Capacity by Energy Type, World Markets: 2023-2032
  • Corporate Renewable Procurement Capacity by Contract Type, North America: 2023-2032
  • Corporate Renewable Procurement Revenue by Contract Type, North America: 2023-2032
  • Corporate Renewable Procurement Capacity by Contract Type, Europe: 2023-2032
  • Corporate Renewable Procurement Revenue by Contract Type, Europe: 2023-2032
  • Corporate Renewable Procurement Capacity by Contract Type, Asia Pacific: 2023-2032
  • Corporate Renewable Procurement Revenue by Contract Type, Asia Pacific: 2023-2032
  • Corporate Renewable Procurement Capacity by Contract Type, Latin America: 2023-2032
  • Corporate Renewable Procurement Revenue by Contract Type, Latin America: 2023-2032
  • Corporate Renewable Procurement Capacity by Contract Type, Middle East & Africa: 2023-2032
  • Corporate Renewable Procurement Revenue by Contract Type, Middle East & Africa: 2023-2032
  • Procurement Reported by RE100 Members Since 2016
  • Corporate Procurement Methods Available in Each Region
  • Examples of Stakeholders in the Corporate Renewable Procurement Market
  • Typical Dynamic Among Stakeholders Based on Procurement Strategy
  • Corporate Renewable Procurement Capacity by Contract Type, World Markets: 2023-2032
  • Corporate Renewable Procurement Revenue by Contract Type, World Markets: 2023-2032
  • Corporate Renewable Procurement Capacity by Energy Type, World Markets: 2023-2032
  • Corporate Renewable Procurement Capacity by Contract Type, North America
  • Corporate Renewable Procurement Revenue by Contract Type, North America
  • Corporate Renewable Procurement Capacity by Contract Type, Europe
  • Corporate Renewable Procurement Revenue by Contract Type, Europe
  • Corporate Renewable Procurement Capacity by Contract Type, Asia Pacific
  • Corporate Renewable Procurement Revenue by Contract Type, Asia Pacific
  • Corporate Renewable Procurement Capacity by Contract Type, Latin America
  • Corporate Renewable Procurement Revenue by Contract Type, Latin America
  • Corporate Renewable Procurement Capacity by Contract Type, Middle East & Africa
  • Corporate Renewable Procurement Revenue by Contract Type, Middle East & Africa
  • Large Corporation-Led Initiatives for Small and Medium Businesses
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