sorta, 3:42 PM (Global corporate clean energy procurement deals of 2+ GW in the fst half of 2022 | IHS Markt
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Energy & Natural Resources Research & Analysis >
Global corporate clean energy
procurement deals of 21 GW in
the first half of 2022
27 September 2022 | Ankita Chauhan
Over the last five years, corporate procurement has been growing
by an average 50% annually with about 29 GW of procurement
contracts recorded in 2021. In the first half of 2022, already 21 GW
of renewable procurement contracts have been recorded driven by
services, materials, and manufacturing sectors among others.
In the second quarter of 2022, United States and India were the
two largest markets recording 60% of the total contracts. While
liberalized electricity markets are dominated by virtual PPAs,
regulated markets enter direct PAs, together making 65% of the
contracts in Q2 2022. «e
‘Amazon is the largest corporate consumer of renewable electricity
with about 1.5 GW of new contracts recorded during second
quarter of 2022. In May 2022, Amazon Web Services (AWS) signed
two PPAs for its California operations in the United States to ®
procure 300 MW solar PV and 150 MW hybrid with storage capacity
from AES Corporation. As of 2021, Amazon has achieved 85% share
of its procurement through renewables and is on its way to achieve
100% renewable procurement target globally by 2025.
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4sorta, 3:42 PM (Global corporate clean energy procurement deals of 2+ GW in the fst half of 2022 | IHS Markt
The second largest offtaker of renewable PPAs during Q2.2022 is
India-based materials company JSW Steel which announced to
procure hybrid renewables including 225 MW solar PV and 733 MW
onshore wind for its Vijaynagara, Karnataka facility. A 25-year
direct PPA is signed with JSW Energy (renewable IPP) under a
group captive mode. JSW Group has a target to reduce its carbon
footprint by 50% with 20 GW renewable energy installed capacity
by 2030 and achieve carbon neutrality by 2050. As of FY2022, JSW
Energy has a 230 MW renewable installed capacity and a pipeline
0f 2.2 GW.
The third largest clean energy offtaker in Q2.2022 is services
company Meta. In April 2022, Meta and TransAlta signed a long
term PPA for 100% of the onshore wind capacity from its pipeline
project Horizon Hill expected to come online in 2023. Meta
reportedly meets 100% of its global electricity demand from
renewable sources since 2020.
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More and more companies are announcing 100% renewable
procurement targets with two-thirds of targets announced in 2022
are from companies headquartered in Asia Pacific with about halt
of them in manufacturing sector.
Regulatory reforms in Asia Pacific markets leading the way for «e
enabling corporate PPAs. Mainland China, Japan, South Korea, and
India are introducing market reforms to increase market
participation by corporate consumers as part of their energy
transition strategies. i)
Learn more about the global corporate clean energy procurement
landscape.
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