Global corporations are accelerating their adoption of renewable energy, with India and Australia taking the lead in forging corporate renewable contracts in the Asia-Pacific region in Q1 2024
In Q1 2024, India and Australia signed 80 percent of the 5.4 GW of corporate renewable contracts in the Asia-Pacific, reflecting a 31 percent year-on-year growth. India's commitment to scaling up renewable energy capacity is notable in meeting its climate goals.
Indian corporations have been increasingly proactive in adopting renewable energy solutions, not just as a response to regulatory pressures but also as a strategic move to enhance sustainability and reduce operational costs.
The corporate sector in the nation, including big names in technology, manufacturing, and services, has shown a strong interest in procuring clean energy.
The global trend in corporate procurement of renewable energy has seen significant growth in 2024, following a substantial increase from previous years.
In just the first quarter of 2024, there was a global contracted capacity of 15.8 GW of corporate renewable energy, marking a 36 per cent increase compared to the previous year.
Europe led in terms of capacity, while the Asia-Pacific region, particularly India and Australia, led in the number of deals, highlighting the critical role of corporate entities in promoting the use of renewable energy.
Corporate power purchase agreements (PPAs) have played a crucial role in companies securing 25 percent of new wind and solar capacity additions worldwide, excluding mainland China. This is a significant increase from the mere 5 percent secured in 2015.
Globally, solar photovoltaic (PV) technology remains the top choice for corporate contracting, accounting for 50 percent of the deals in the first quarter of 2024.
Offshore wind is also gaining momentum, particularly in Europe, where it reached a quarterly high of 1.7 GW, contributing to 30 percent of the region's signed capacity.
In North America, especially in 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, fueled by significant deals in Australia, such as those by mining giant Rio Tinto.