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India, along with Australia, accounted for 80 per cent of the 5.4 GW of corporate renewable contracts announced in the Asia-Pacific region in the first quarter of 2024, according to S&P Global Commodity Insights (GCI).
As the global push for renewable energy continues to gain momentum, India is emerging as a key player in corporate clean energy procurement, significantly contributing to the global surge in renewable energy adoption. This reflects a 31 per cent year-on-year growth in the region. India's contribution is particularly noteworthy given the country's commitment to scaling up renewable energy capacity to meet its ambitious climate goals and reduce reliance on fossil fuels. 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 nation's corporate sector, including giants in technology, manufacturing, and services, has shown a keen interest in clean energy procurement. The global trend in corporate procurement of renewable energy has shown remarkable growth in 2024, building on a substantial increase from previous years. In the first quarter of 2024 alone, 15.8 GW of corporate renewable capacity was contracted globally, reflecting a 36 per cent year-on-year increase. Europe led in terms of capacity, while the Asia-Pacific region, notably India and Australia, dominated in the number of deals, underlining the significant role of corporate entities in driving the renewable energy agenda. Corporate power purchase agreements (PPAs) played a critical role, with companies securing 25 per cent of new wind and solar capacity additions worldwide, excluding mainland China, compared to a mere 5 per cent in 2015. Globally, solar photovoltaic (PV) technology remains the preferred choice for corporate contracting, accounting for 50 per cent of the deals in the first quarter of 2024. Offshore wind also gained traction, especially in Europe, reaching a quarterly high of 1.7 GW and contributing to 30 per cent of the regional capacity signed. In North America, particularly 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, driven by significant deals in Australia, such as those by mining giant Rio Tinto. In the Asia-Pacific region, the manufacturing sector retained its momentum in clean energy procurement, highlighting the industry's focus on reducing carbon footprints and enhancing energy efficiency. In contrast, the services sector in Asia-Pacific saw a slight dip in procurement, decreasing by 0.6 GW quarter over quarter. Nevertheless, the services sector, especially technology companies, continued to be a major player in North America and Europe, contributing to nearly 40 per cent of the deals in the latter region. The green energy attribute markets remained dynamic across most regions in the first quarter, with varying price trends observed. In Europe, demand for EU guarantees of origin (GOs) slightly decreased due to factors like the phaseout of EU GOs in the UK and economic stagnation. However, issuance grew by 23 per cent, primarily driven by wind energy expansion, leading to downward pressure on prices. Globally, the international renewable energy certificates market expanded significantly, with a record quarterly redemption growth of 43 TWh (72 per cent). The UAE, mainland China, and Chile were among the leaders in demand growth, with hydroenergy accounting for 52 per cent of the increased demand. (ANI)
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