The American Clean Power Association (ACP) has launched a report that exhibits companies bought extra clear power in 2022 than any earlier yr. The Clear Vitality Powers American Enterprise report offers an in depth image of how business and industrial (C&I) firms are driving demand for American clear power and accelerating the clear power transition via purchases of unpolluted energy straight from wind, photo voltaic and power storage crops.
At the same time as energy buy settlement (PPA) costs elevated, companies bought practically 20 GW of unpolluted power in 2022, greater than 4 GW larger than any earlier yr. By the top of the yr, over 300 companies had contracted greater than 77 GW of unpolluted power. As soon as operational, that’s sufficient capability to energy the equal of over 1,000 knowledge facilities, or 18 million American properties.
“Financial and environmental advantages, in addition to rising stress on companies to satisfy sustainability targets, have led to a 100-times enhance in company clear energy procurement over the previous decade,” says JC Sandberg, interim CEO and chief advocacy officer. “Throughout that very same interval, photo voltaic and wind prices have decreased 71 p.c and 47 p.c respectively, making each extra engaging to company power consumers. American firms are benefiting from – and contributing to – the affordability of unpolluted energy.”
Know-how firms have contracted extra clear power than every other trade, and Amazon, Meta and Google – in that order – are the highest three clear energy consumers, with latest bulletins by Amazon and Meta inflicting them to overhaul Google, the previous chief.
The power trade now has the second most clear energy capability contracted at 6.7 GW, with conventional oil and fuel firms equivalent to Shell, TotalEnergies and ExxonMobil accounting for 60% of complete capability contracted by power firms.
Companies are buying clear power from 540 tasks unfold throughout 49 states, DC and Puerto Rico, however Texas is house to nearly all of company contracted clear energy, adopted by Illinois and Ohio.
There are 326 firms which have clear energy procurement agreements in place throughout the nation, with working contracts accounting for 16% of complete working clear energy in the US – the equal of practically 6 million American properties.
Photo voltaic tasks at the moment are outpacing wind as the popular selection for company consumers, with utility-scale photo voltaic accounting for 58% of company contracted clear energy. Hybrid tasks that embody storage – primarily photo voltaic plus storage – are rising quickly.
Tasks with company consumers assist native economies with roughly $143 million in state and native tax funds and $147 million in land lease funds to native farmers and landowners.
Additionally they keep away from nearly 47 million metric tons of carbon emissions every year, equal to the emissions from practically 10 million gasoline-powered passenger autos pushed for one yr.
“Texas could be the house of the oil and fuel trade, however it’s quick turning into the main state to purchase clear power to energy enterprise exercise,” continues Sandberg. “Company demand for clear power is a key driver for wind, photo voltaic and battery storage growth. Even conventional oil and fuel firms now acknowledge the worth of unpolluted power for his or her operations, making the power sector the second-largest trade for clear energy purchases.”
The tech trade leads the record, and the clear energy horse race between Amazon, Meta and Google continues to play out. A big quantity of latest energy buy settlement (PPA) bulletins have made Amazon the highest company purchaser. Between 2020 and 2022, Amazon introduced 11 GW of latest PPAs. Meta, the second largest clear energy purchaser, has, on common, introduced over 940 MW of latest clear energy procurement every year since 2013. Google, one of many earliest adopters of unpolluted energy, had a gradual yr of procurement in 2021 however rebounded in 2022 with greater than 940 MW.
Company procurement of photo voltaic plus storage tasks soared over the previous two years, partially because of the growing availability of hybrid tasks. Pairing photo voltaic with storage permits C&Is to profit from firmed era. On-line solar-plus-storage capability has practically quadrupled over the previous 5 years and the record of solar-plus-storage tasks within the pipeline swells.
View the total Clear Vitality Powers American Enterprise Report here.