2Q 2018

Corporate Utility-Scale Offsite Renewable Energy Procurement Solutions

Procurement of Utility-Scale Solar PV and Wind Power by Large C&I Energy Users: Global Market Analysis and Forecasts

Large multinational corporations, universities, and municipalities are increasingly committing to targets for greenhouse gas (GHG) emissions reductions and renewable energy procurement as part of their sustainability programs. These commitments go beyond installing onsite renewable energy systems or buying voluntary renewable energy tracking instruments from existing projects that are unbundled from the electricity delivered to the grid. Today, many large multinational corporations, universities, and municipalities, referred to as corporate buyers, engage in innovative transaction models to procure renewable energy from utility-scale offsite renewable energy (ORE) projects.

Meanwhile, renewable energy project developers and independent power producers (IPPs) are increasingly required to compete with traditional electricity generation sources. The resulting uncertainties in long-term income streams affect the bankability of renewable energy projects. As corporate buyers become new power market electricity offtake partners, the new renewable energy transaction models will likely help the buyers meet their sustainability goals while mitigating revenue and project bankability risks for developers/IPPs. These new models will also help corporate buyers meet their needs for energy spend reduction and long-term energy price risk mitigation.

This Navigant Research report analyzes the global market for corporate utility-scale ORE procurement solutions. The study examines the key drivers, barriers, and transaction models related to corporate buyers’ procurement of renewable energy from utility-scale ORE projects. Four transaction models are covered: virtual (physical) power purchase agreements (PPAs), virtual (financial) PPAs (also known as contracts for difference, or CFDs), green direct access tariffs, and community renewables. Global market forecasts for power capacity and revenue, segmented by generation type (solar PV and wind), transaction model, and region, extend through 2027. The report also examines the regional market landscapes, future market developments, and trends for the procurement of renewable energy from utility-scale ORE by corporate buyers.

Pages 57
Tables | Charts | Figures 46

  • What are corporate utility-scale offsite renewable energy (ORE) procurement solutions?
  • What are the global market drivers and barriers for corporate utility-scale ORE procurement solutions?
  • What regional trends are affecting the procurement of utility-scale ORE by corporate buyers around the world?
  • Which transaction models will utility-scale ORE procurement vendors and corporate buyers use?

  • Solar PV project developers and financiers
  • Solar PV technology manufacturers
  • Wind project developers and financiers
  • Wind technology manufacturers
  • Distributed energy resources (DER) platform software companies
  • DER project developers, systems integrators, and financiers
  • Utility business model strategists
  • Federal, state, and local policymakers
  • Investor community

1. Executive Summary

1.1   Introduction

1.2   New Renewable Energy Procurement Solutions for Corporate Energy Users

1.3   Forecast Highlights

2. Market Issues

2.1   Introduction

2.2   Drivers for Utility-Scale ORE Procurement

2.2.1   Corporate Buyers

2.2.2   Renewable Energy Project Developers and IPPs

2.3   Barriers to Utility-Scale ORE Procurement

2.3.1   Corporate Buyers

2.3.2   Renewable Energy Project Developers and IPPs

2.4   Transaction Models

2.4.1   Virtual (Physical) PPAs

2.4.1.1   EU Virtual (Sleeved) PPAs

2.4.2   Virtual (Financial) PPAs (CFDs)

2.4.2.1   EU Virtual (Synthetic) PPAs

2.4.3   Green Direct Access Tariffs

2.4.4   Community Renewables

3. Regional Market Landscapes

3.1   North America

3.1.1   Current Market Landscape

3.1.2   Future Market Developments

3.1.2.1   Aggregator Models

3.1.2.2   Direct Access Buyouts

3.1.2.3   WRI’s Clean Power Council for Customers & Utilities

3.1.3   Key Trends by Country

3.1.3.1   US

3.1.3.2   Canada

3.2   EU

3.2.1   Current Market Landscape

3.2.2   Future Market Developments

3.2.3   Key Trends by Country

3.2.3.1   UK

3.2.3.2   Sweden/Norway

3.2.3.3   Netherlands

3.2.3.4   Germany

3.2.3.5   Spain

3.2.3.6   France

3.2.3.7   Italy

3.2.3.8   Balance of the EU

3.3   Asia Pacific

3.3.1   Current Market Landscape

3.3.2   Future Market Developments

3.3.3   Key Trends by Country

3.3.3.1   China

3.3.3.2   India

3.3.3.3   Japan

3.3.3.4   South Korea

3.3.3.5   Australia

3.4   Latin America

3.4.1   Current Market Landscape

3.4.2   Future Market Developments

3.4.3   Key Trends by Country

3.4.3.1   Mexico

3.4.3.2   Chile

3.4.3.3   Brazil

3.4.3.4   Argentina

3.5   Middle East & Africa

3.5.1   Current Market Landscape

4. Market Forecasts

4.1   Introduction

4.2   Market Forecast Methodology

4.3   Market Forecasts

4.3.1   Global Market Forecast

4.3.2   North American Market Forecast

4.3.3   EU Market Forecast

4.3.4   Asia Pacific Market Forecast

4.3.5   Latin American Market Forecast

4.4   Conclusions and Recommendations

5. Acronym and Abbreviation List

6. Table of Contents

7. Table of Charts and Figures

8. Scope of Study, Sources and Methodology, Notes

  • US Virtual (Physical) PPA Overview
  • EU Virtual (Sleeved) PPA Overview
  • US Virtual (Financial) PPA Overview
  • EU Virtual (Synthetic) PPA Overview
  • Basic Structure of EU Virtual (Synthetic) PPAs
  • Green Direct Access Tariff Overview
  • Community Solar Example
  • Overview of Corporate Utility-Scale ORE Deals, US: 2013-2018
  • Utility Service Areas in WRI’s Clean Power Council for Customers & Utilities
  • US Renewable Energy Purchasing Map
  • Annual Corporate Utility-Scale ORE Capacity and Revenue by Region, World Markets: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity and Revenue by Generation Type, World Markets: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity and Revenue by Transaction Model, World Markets: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity and Revenue by Generation Type, North America: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity and Revenue by Transaction Model, North America: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity and Revenue by Generation Type, EU: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity and Revenue by Transaction Model, EU: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity and Revenue by Generation Type, Asia Pacific: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity and Revenue by Transaction Model, Asia Pacific: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity and Revenue by Generation Type, Latin America: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity and Revenue by Transaction Model, Latin America: 2018-2027

  • Annual Corporate Utility-Scale ORE Revenue by Transaction Model, World Markets: 2018-2027
  • Annual Corporate Utility-Scale ORE Revenue by Generation Type, World Markets: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Region, World Markets: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Transaction Model, World Markets: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Generation Type, World Markets: 2018-2027
  • Annual Corporate Utility-Scale ORE Revenue by Transaction Model, North America: 2018-2027
  • Annual Corporate Utility-Scale ORE Revenue by Transaction Model, EU: 2018-2027
  • Annual Corporate Utility-Scale ORE Revenue by Transaction Model, Asia Pacific: 2018-2027
  • Annual Corporate Utility-Scale ORE Revenue by Transaction Model, Latin America: 2018-2027
  • Annual Corporate Utility-Scale ORE Revenue by Transaction Model, Middle East & Africa: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Transaction Model, North America: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Transaction Model, EU: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Transaction Model, Asia Pacific: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Transaction Model, Latin America: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Transaction Model, Middle East & Africa: 2018-2027
  • Annual Corporate Utility-Scale ORE Revenue by Generation Type, North America: 2018-2027
  • Annual Corporate Utility-Scale ORE Revenue by Generation Type, EU: 2018-2027
  • Annual Corporate Utility-Scale ORE Revenue by Generation Type, Asia Pacific: 2018-2027
  • Annual Corporate Utility-Scale ORE Revenue by Generation Type, Latin America: 2018-2027
  • Annual Corporate Utility-Scale ORE Revenue by Generation Type, Middle East & Africa: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Generation Type, North America: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Generation Type, EU: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Generation Type, Asia Pacific: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Generation Type, Latin America: 2018-2027
  • Annual Corporate Utility-Scale ORE Capacity by Generation Type, Middle East & Africa: 2018-2027

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