The global market for corporate, utility-scale offsite renewable energy (ORE) projects is expected to reach $15.6 billion by 2027, Navigant Research said.
Many multinational corporations, universities, and municipalities are installing onsite renewable energy systems and engaging in innovative transaction models to procure renewable energy from utility-scale offsite renewable energy (ORE) projects.
These models can help corporate buyers meet sustainability and energy spend reduction goals while reducing power market risks for project developers and independent power producers (IPPs).
“These new renewable energy transaction models will not only help corporate buyers meet their sustainability and energy spend reduction goals, but will over time will help mitigate project bankability risks for project developers and IPPs,” said William Tokash, senior research analyst with Navigant.
Asia Pacific is expected to be the largest region for utility-scale ORE procurement, where annual power capacity and revenue are forecast to reach 9.2 GW and $7.9 billion by 2027.
The second largest region is projected to be North America, which is expected to reach 2.7 GW and $3.1 billion in 2027.
The report said growth of these markets will depend on the emergence of flexible contracting mechanisms that allow for the creditworthy benefits of a corporate buyer to be recognized by project developers and IPPs.