RE100 Firms Added 57 GW Of Renewable Power, Says BNEF Report

A latest report from Bloomberg New Energy Finance (BNEF) has shed light on the transition of clean energy corporations. The report said that clean energy corporations have undergone a significant transition in the Asia-Pacific (APAC). It said that the transition was more significant over the last two decades. The research agency said that these corporations now aim to meet their energy procurement needs from renewable sources.

BNEF said that RE100 members added 37 GW of solar and 20 GW of wind capacity by June 2024. RE100 is a coalition of businesses committed to purchasing 100% renewable electricity by 2050. Corporate demand for clean power procurement has been a critical driver of continued investment in renewable capacity expansion in APAC markets. This seemed true for countries like Australia and Japan, especially after direct subsidies were reduced.

BNEF estimates that current RE100 members could meet an additional 296 TWh of clean electricity demand by 2030. This is said if they achieve their 100% clean energy goals. This is set to catalyze the development of 99 GW of new renewable capacity. Furthermore, BNEF said that compliance with RE commitments by 463 RE100 members can bring positive changes. The researchers said that 32.8 GW of solar and wind capacities could be created between now and 2025. This, they said is under the condition that these 463 RE100 firms meet their clean electricity shortfall entirely through offsite solar and wind power purchase agreements (PPAs).

For example, in September 2020, Google became the first major corporation to set a 2030 target. It planned to match all its electricity demand with a 24/7 carbon-free supply. Since then, companies such as Microsoft and Iron Mountain have announced similar 24/7 carbon-free power procurement targets.

State of Corporate Clean Power Procurement 

Corporations announced 211 clean PPAs globally in the first half of 2024 (Figure 12). It is set to reach a total of 22.1 GW—a 36% increase compared to the first half of 2023. These global volumes are on track for their eighth consecutive year of growth. This became possible with firms collectively signing 220 GW of deals since 2008. On average, the market has grown 43% annually since 2015, as companies contribute to driving the energy transition.

In APAC, renewable energy procurement activity reached a record 9.7 GW of PPAs in 2023 (Figure 11). This marked a 26% increase from the previous year. Australia and India remain the largest clean PPA markets in the region (Figure 22). Meanwhile, the growth in Northeast Asia is also accelerating.

The BNEF report shows sustained momentum, with 30 PPAs (totaling 4.7 GW) announced by June 2024. it seemed to exceed the 23 contracts signed during the same period in 2023. The average deal size also increased, reaching 120 MW. It is compared to 80 MW for the whole of 2023 and 56 MW in 2022.

Australia accounted for the majority of regional activity in the first half of 2024, with 2.5 GW of deals. South Korea (339 MW) and Japan (249 MW) also experienced significant growth compared to previous years. Despite this progress, APAC remains the smallest region for clean power procurement, even as it leads the world in electricity consumption.

This smaller market size compared to Europe and North America reflects APAC’s lag in implementing power market reforms. These reforms are necessary for clean power procurement options. However, this is expected to change in the coming years. it is mainly due to rising demand for clean energy across the region.