Corporations around the world purchased a record 31.1 GW of renewable energy in 2021

According to BloombergNEF analysis, corporations across the globe acquired a record 31.1 GW of renewable energy in 2021, up 24 percent from the previous high of 25.1 GW in 2020, writes.

LevelTen Energy Marketplace statistics show that persistent demand for renewable energy combined with supply chain restrictions and connectivity delays resulted in a 5.9 percent rise in average power purchase agreement (PPA) costs in the fourth quarter of 2021.

Growing competition among corporate purchasers has also resulted in greater procurement process innovation, ranging from more flexible PPA contracts to clients who are questioning the PPA itself.

As the sector transforms towards a seller’s market, corporate purchasers of renewable energy are modifying their expectations of the process.

Despite a continuous higher trend in PPA pricing, global corporate procurement reached yet another record in 2021, and the pace is not projected to decrease in 2022. In addition to the growing number of businesses setting clean energy goals — and expanding their goals from net zero emissions to 24/7 clean energy — demand for clean energy is still backlogged due to Covid-19-related delays in 2020, according to Gia Clark, senior director of developer services for LevelTen Energy.

Clark described one frequent contract approach as establishing a range of probable completion dates rather than a single goal date. Supply chain restrictions have made meeting specified objectives more challenging, and missed deadlines often leave developers holding the bag. According to Clark, developers are increasingly expecting purchasers to bear part of the risk associated with potential delays.

According to company president Leonardo Moreno, AES Clean Energy, which sold more renewable energy to firms than any other developer according to BloombergNEF, has witnessed rising demand in 24/7 renewable energy solutions. While the majority of companies continue to pursue net-zero goals, Moreno noted that several large corporations that have already achieved net-zero status, such as Microsoft, have announced 24/7 ambitions following Google’s announcement of its plan to power data centers with clean energy around the clock in late 2020.