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10 February 2022

US tech giants lead 24% increase in corporate renewable energy spend

Amazon, Microsoft and Meta lead the way as corporates bought a record 31.1GW of renewable energy through power purchase agreements in 2021.

By Energy Monitor Staff

Corporations bought a record 31.1GW of renewable energy via power purchase agreements (PPAs) in 2021, an increase of 24% from the previous year’s record of 25.1GW, according to research company BloombergNEF (BNEF).

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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An Amazon logistics centre in Szczecin, Poland. (Photo by Mike Mareen via Shutterstock)

Nearly two-thirds (65%) of the spend came from the US, driven by the county’s largest technology companies, which collectively signed more than half of the deals. Europe saw a record 8.7GW of deals announced. Corporate renewable electricity sourcing on the continent has been increasing significantly in recent years.

Nearly 140 corporations in 32 different countries announced renewable energy contracts last year, according to BNEF’s 1H 2022 Corporate Energy Market Outlook, with the total volume equivalent to more than 10% of all the renewable energy capacity added globally last year.

For the second year in a row, Amazon was the largest renewable energy buyer globally, announcing 44 off-site PPAs in nine countries, totalling 6.2GW. That brings its total renewable energy PPA capacity to 13.9GW – the 12th-biggest globally among all types of companies, just ahead of French utility EDF. Microsoft and Meta came in second and third, with 8.9GW and 8GW, respectively.

Corporate sustainability commitments are driving the record-breaking renewable energy purchases. In 2021, 67 companies set an RE100 target, a pledge to offset 100% of a company’s electricity demand with renewable energy, bringing the campaign to 355 members across 25 countries. These companies collectively consumed 363 terawatt-hours of electricity annually – more than the UK's entire power generation for the year.

Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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