Corporations are set to sign a record level of clean energy power contracts in 2019 after year-on-year growth in a first half dominated by US deals, said BloombergNEF.
Global corporate renewable PPAs totaled 8.6GW in the January-June period, up from 7.2GW at the same stage in 2018, said the research group’s latest market outlook. That leaves 2019 on course to outstrip the record 13.4GW notched up last year, it said.
The first-half corporate renewables market was dominated by the US, which accounted for 69% of activity, said BloombergNEF, with Texas the largest single destination for procurement.
The analyst group added: “Just 1GW of deals in the US have come from green tariffs with regulated utilities. It is likely we won't reach the 2.6GW seen in all of 2018. This may be a result of buyer apprehension, as several companies have been involved in highly-publicised legal battles with regulated utilities over clean energy buying.”
Instead BloombergNEF said US corporates are favouring the virtual PPA model – as seen in the latest high-profile wind purchase by fashion group Gap.
By contrast with the US, BloombergNEF said Europe, the Middle East and Africa showed “underwhelming” activity levels of 950MW. China, however, is set to introduce “game changing” corporate procurement policies, including a renewable portfolio standard that should create new demand there, said the researchers.