Corporate buyers are increasingly driving the development of clean energy projects in the United States, according to a new report commissioned by the Clean Energy Buyers Association (CEBA). The study highlights the critical role that voluntary commitments from companies to purchase renewable power play in overcoming financing challenges and meeting rising electricity demand.
The report, conducted by renewable energy data firm REsurety, examined the economic performance of 251 wind and solar projects across three major power markets: the Electric Reliability Council of Texas (ERCOT), the Midcontinent Independent System Operator (MISO), and PJM Interconnection. It found that without the backing of corporate buyers, many projects would struggle to secure the necessary loans for development. Virtual power purchase agreements (VPPAs), which allow companies to lock in long-term contracts with renewable energy projects, are instrumental in providing the clarity loan providers need.
“Corporate buyers are critical to ensuring the US can build enough clean energy at the pace and scale that’s needed to meet skyrocketing power demand from the growth in artificial intelligence, electrification, and a resurgence in US manufacturing,” said Misti Groves, senior vice-president of US strategy at CEBA. This sentiment was echoed by David Groleau, executive vice-president of Pine Gate Renewables, who stated, “Corporate buyers are the backbone of clean energy deployment, anchoring project financing and shaping the future of reliable, cost-effective power.”
The findings reveal that VPPAs significantly decrease the number of projects experiencing financial difficulties—by 90% in MISO and PJM, and by 80% in ERCOT. Additionally, renewable energy certificates (RECs) play a crucial role in providing a stable source of additional revenue, reducing the number of projects facing financial challenges by 30%.
Since 2016, corporate buyers have contributed to more than 40% of new clean energy capacity additions in the US. Emily Cohen, chief commercial officer at solar energy company Primergy, noted, “The acceleration of corporate purchases from clean energy projects transformed the US market over the past 10 years, providing developers and owners long-term, stable revenues on projects and a view on future demand to help maintain continued growth.”
CEBA, a business trade organisation dedicated to mobilising a network of energy consumers and partners, aims to achieve a carbon emissions-free energy system. Its membership includes 400 entities, encompassing one-fifth of the Fortune 500 and representing a market capitalisation exceeding $33tn. The organisation’s efforts underscore the growing influence of corporate buyers in shaping the future of the clean energy sector.
This trend suggests that corporate commitments will continue to be a driving force in the development of renewable energy projects, potentially accelerating the transition to a cleaner energy landscape. As more companies recognise the benefits of stable, long-term revenue streams from renewable energy projects, the sector is likely to see increased investment and growth. This shift could also spur innovation in energy storage and grid management technologies, further enhancing the reliability and cost-effectiveness of clean energy solutions.