With new advancements in energy procurement, the renewable energy sector is developing and strengthening
Fremont, CA: Despite the volatility of 2020, which included a halt on projects at the outset of the pandemic in the spring, corporate purchasers continued to prioritize renewable electricity procurement. Renewable procurements in the United States surpassed 10 gigawatts in 2021, setting a new high. The year was boosted by the last quarter when over three-quarters of the year's capacity was signed in transactions. According to REBA, the pace is continuing, with projects announced in the first quarter exceeding each year's entire annual capacity.
Trends in renewable energy
Procurement agreements are being signed by several companies
Since the beginning, big tech has been a trailblazer in corporate sustainable energy contracts. The industry continues to lead the way, with more deals signed, larger transactions negotiated, and new contract types pioneered. Companies in heavy industry, such as steel and heavy machinery, are particularly interested in renewable energy. It's a significant deal that big polluters are buying renewable energy. Industrial emissions account for a third of world emissions, and it's past time for these industries to decarbonize. Early adopters in the industrial sector, such as steelmakers Evraz North America and Nucor Corporation, are helping to propel a market for greener products forward.
The human impact of sustainable energy procurement is being considered by businesses
Companies are able to apply more sophisticated criteria when establishing long-term contracts as additional contract models and structures arise. This strategic lens can be used to calculate upstream implications, such as the labor practices of an energy company or the material sourcing of a solar panel manufacturer. It can also be used to ensure that renewable energy projects benefit the local community by producing well-paying jobs that promote diversity, equity, and inclusion.
The latest State of the Market report is about more than just corporate procurements. Rather, it's a warning to energy purchasers about what the market might become if their goals are aligned. When it comes to the upcoming generation of corporate procurement, energy buyer trend-setters are focusing on quality rather than quantity.
