Corporate buyers drive US clean energy growth, report finds

Corporate purchasers are increasingly driving renewable energy development in the US, according to a report commissioned by the Clean Energy Buyers Association (CEBA). The study found that without voluntary commitments from companies to buy renewable power, many projects would face financing hurdles, limiting the ability to meet growing electricity demand.

Virtual power purchase agreements (VPPAs), which allow companies to secure long-term contracts for future electricity at fixed prices, are critical to project financing. Lenders often require certainty on buyers and pricing before approving loans.

The report, prepared by REsurety, analysed 251 wind and solar projects across ERCOT, MISO, and PJM. Results show projects often struggle financially without corporate backing. VPPAs reduce the risk of financial stress by 80% in ERCOT and 90% in MISO and PJM. Renewable energy certificates (RECs) also provide stable revenue, lowering financial risk by around 30%.

Since 2016, corporate buyers have accounted for over 40% of new renewable capacity in the US.