PUBLISHER: The Business Research Company | PRODUCT CODE: 1877874
PUBLISHER: The Business Research Company | PRODUCT CODE: 1877874
A renewable power purchase agreement is a long-term contract between a buyer and a renewable energy producer to purchase electricity generated from renewable sources at predetermined prices. It provides price stability and supports the financing of renewable energy projects by ensuring a consistent revenue stream for producers. This agreement promotes the development of new renewable energy assets while enabling buyers to secure clean and sustainable energy.
The key types of renewable power purchase agreements include solar power purchase agreements, wind power purchase agreements, hydropower purchase agreements, biomass power purchase agreements, and others. Solar power purchase agreements are contracts in which a buyer commits to purchasing electricity generated from solar energy installations under agreed terms, ensuring cost-effective and sustainable energy procurement. The contract durations include short-term, medium-term, and long-term power purchase agreements, with pricing models such as fixed price, index based, hybrid price, and others. The key applications include renewable energy integration, off-site power procurement, peak load management, energy cost savings, and others, serving end users such as commercial, industrial, utility, government, and other sectors.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the utilities sector, particularly in power generation, grid infrastructure, and renewable energy projects. Higher duties on imported equipment such as turbines, transformers, solar panels, and battery storage systems have increased capital and operational costs for utility providers, forcing them to reconsider project timelines or pass on expenses to consumers through higher energy rates. The water and waste management segments are also affected, with tariffs driving up the cost of essential machinery, piping, and treatment technologies. Additionally, retaliatory tariffs have disrupted global supply chains for critical raw materials like rare earth metals used in clean energy technologies, further complicating the transition to sustainable energy sources. The sector must now prioritize domestic sourcing, digitalization, and efficiency-driven innovations to manage escalating costs while ensuring energy security and regulatory compliance.
The renewable power purchase agreement market research report is one of a series of new reports from The Business Research Company that provides renewable power purchase agreement market statistics, including renewable power purchase agreement industry global market size, regional shares, competitors with a renewable power purchase agreement market share, detailed renewable power purchase agreement market segments, market trends and opportunities, and any further data you may need to thrive in the renewable power purchase agreement industry. This renewable power purchase agreement market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The renewable power purchase agreement market size has grown rapidly in recent years. It will grow from $32.01 billion in 2024 to $35.42 billion in 2025 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period is driven by rising demand for clean energy, government incentives and subsidies, technological advancements in renewable energy, corporate sustainability initiatives, and increasing electricity costs from conventional sources.
The renewable power purchase agreement market size is expected to see rapid growth in the next few years. It will grow to $53.65 billion in 2029 at a compound annual growth rate (CAGR) of 10.9%. The growth in the forecast period can be connected to the expansion of corporate renewable procurement, growing adoption of hybrid PPA structures, regulatory mandates for net zero targets, declining costs of solar and wind power, and integration of energy storage with renewable PPAs. Major trends in the forecast period include blockchain based energy trading platforms, integration of AI and IoT for real time energy management, growth of corporate renewable PPAs, emergence of hybrid renewable energy PPAs, and adoption of green hydrogen linked PPAs.
The increasing focus on environmental, social, and governance (ESG) criteria is expected to enhance the growth of the renewable power purchase agreement market going forward. Environmental, social, and governance (ESG) criteria refer to the growing emphasis on sustainable, ethical, and transparent business practices. The rise in environmental, social, and governance (ESG) criteria results from the growth of sustainable investment, as businesses adopt responsible practices to attract investors and enhance long-term value. The growing focus on environmental, social, and governance (ESG) criteria promotes the adoption of renewable power purchase agreements by encouraging organizations to align energy procurement with sustainability goals, reduce carbon footprints, meet stakeholder expectations, and demonstrate responsible corporate governance. For instance, in September 2025, according to a report published by KPMG, a Netherlands-based professional services company, 56 percent of companies use ESG data dashboards to collect, organize, store, and analyze non-financial data, while 68 percent reported using traditional artificial intelligence or machine learning. Additionally, 63 percent of leaders expect ESG assurance to improve employee engagement and productivity, compared to 47 percent of beginners. Therefore, the increasing focus on environmental, social, and governance (ESG) criteria is enhancing the growth of the renewable power purchase agreement market.
Leading companies in the renewable power purchase agreement market are emphasizing the adoption of blockchain and artificial intelligence-based digital platforms, such as modular solar thermal energy systems, to strengthen their competitive position. These systems harness and store solar energy as heat within long-duration thermal batteries, enabling on-demand electricity generation and overcoming the intermittency challenges associated with conventional renewable sources. For example, in September 2024, Exowatt, a U.S.-based renewable energy enterprise, launched the Exowatt P3 - a modular energy solution tailored for data centers and industrial operations. The Exowatt P3 features a scalable architecture, provides up to 24 hours of energy storage, and delivers power at an industry-leading cost of less than 4 cents per kWh. It allows for rapid deployment, requires minimal maintenance, and supports zero-carbon operations using domestically sourced materials. This innovation facilitates seamless renewable energy integration by ensuring a reliable and cost-efficient power supply, reducing operational expenses, and significantly lowering CO2 emissions. Such transformative technologies are redefining the future of renewable power purchase agreements by advancing both energy resilience and sustainability.
In February 2025, ONGC NTPC Green Private Limited (ONGPL), an India-based joint venture specializing in renewable energy solutions such as solar, wind, and energy storage, acquired Ayana Renewable Power Private Limited for approximately USD 2.3 billion (₹19,500 crore). Through this acquisition, ONGPL aims to accelerate India's transition toward a low-carbon economy and substantially expand its renewable energy portfolio, supporting the Net Zero goals of its parent companies, ONGC and NTPC, by 2038 and 2050 respectively. Ayana Renewable Power is an India-based renewable energy platform with about 4.1 gigawatts of operational and under-construction solar, wind, and round-the-clock power assets, contracted with high-credit-rated off-takers including SECI, NTPC, GUVNL, and Indian Railways.
Major players operating in the renewable power purchase agreement market are Iberdrola, S.A, Orsted A/S, RWE AG, Statkraft AS, Vattenfall AB (Vattenfall), EDF Energy, BayWa AG (BayWa r.e. AG), BP (via Lightsource bp), Shell Plc, SSE Renewables, Siemens Energy, Drax Energy Solutions Limited, TotalEnergies SE, Aker Horizons ASA (Mainstream Renewable Power), Renew Energy Global PLC, Clearway Energy Group, Enel Global Trading SpA, Adani Green Energy (SB Energy), Ameresco Inc., Atlas Renewable Energy, SEC Victoria Pty Ltd.
North America was the largest region in the renewable power purchase agreement market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the renewable power purchase agreement market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the renewable power purchase agreement service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The renewable power purchase agreement includes revenues earned by entities by services such as electricity usage analysis, educational workshops, procurement strategy, business case development, request for proposal (RFP) management, contract negotiation and execution. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Renewable Power Purchase Agreement Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on renewable power purchase agreement market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for renewable power purchase agreement ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The renewable power purchase agreement market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.