Australia and India Lead Corporate Renewable Energy Surge in Asia-Pacific

This surge represents a 31 per cent year-on-year growth in the region.

Australia and India have emerged as leaders in corporate renewable energy procurement, accounting for 80 per cent of the 5.4 gigawatts (GW) of renewable contracts announced in the Asia-Pacific region during the first quarter of 2024, according to a recent report by S&P Global Commodity Insights (GCI).

As global momentum for renewable energy accelerates, India’s significant contribution underscores its commitment to scaling up renewable energy capacity, aiming to meet ambitious climate goals and reduce reliance on fossil fuels. This surge represents a 31 per cent year-on-year growth in the region.

Indian corporations have been increasingly proactive in adopting renewable energy solutions, not merely in response to regulatory pressures but also as a strategic move to enhance sustainability and reduce operational costs. Key players in the nation’s corporate sector, including giants in technology, manufacturing, and services, are showing a keen interest in clean energy procurement.

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The global trend in corporate renewable energy procurement has shown remarkable growth in 2024, with 15.8 GW of corporate renewable capacity contracted globally in the first quarter alone. This reflects a 36 per cent year-on-year increase. Europe led in terms of capacity, while the Asia-Pacific region, particularly India and Australia, dominated in the number of deals, highlighting the significant role of corporate entities in driving the renewable energy agenda.

Corporate power purchase agreements (PPAs) have played a critical role in this trend. Companies secured 25 per cent of new wind and solar capacity additions worldwide, excluding mainland China, compared to a mere 5 per cent in 2015. Solar photovoltaic (PV) technology remains the preferred choice for corporate contracting, accounting for 50 per cent of the deals in the first quarter of 2024. Offshore wind also gained traction, especially in Europe, reaching a quarterly high of 1.7 GW and contributing to 30 per cent of the regional capacity signed.

In North America, particularly the United States, corporations are increasingly entering PPAs with nuclear projects, reflecting a diversified approach to clean energy adoption. The mineral extraction sector emerged as the second-largest in corporate clean energy procurement, driven by significant deals in Australia, such as those by mining giant Rio Tinto.

The manufacturing sector in the Asia-Pacific region has maintained its momentum in clean energy procurement, emphasising the industry’s focus on reducing carbon footprints and enhancing energy efficiency. In contrast, the services sector in Asia-Pacific saw a slight dip in procurement, decreasing by 0.6 GW quarter over quarter. Nonetheless, technology companies in the services sector continued to be major players in North America and Europe, contributing to nearly 40 per cent of the deals in the latter region.

The green energy attribute markets remained dynamic across most regions in the first quarter, with varying price trends observed. In Europe, demand for EU guarantees of origin (GOs) slightly decreased due to factors such as the phaseout of EU GOs in the UK and economic stagnation. However, issuance grew by 23 per cent, primarily driven by wind energy expansion, leading to downward pressure on prices.

Globally, the international renewable energy certificates market expanded significantly, with a record quarterly redemption growth of 43 terawatt-hours (TWh), a 72 per cent increase. The UAE, mainland China, and Chile were among the leaders in demand growth, with hydro-energy accounting for 52 per cent of the increased demand.

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As India and Australia continue to lead the charge in corporate renewable energy procurement, the global push for sustainable energy solutions remains strong, promising a greener and more sustainable future.

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