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Released January 20, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Corporations purchased more wind, solar and battery-storage power in the U.S. in 2022 than any year prior, according to a new report from the American Clean Power Association (ACP) (Washington, D.C.). The report said major tech companies Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington), Meta Platforms Incorporated (NASDAQ:META) (Menlo Park, California) and Alphabet Incorporated (NASDAQ:GOOGL) (Mountain View, California), the parent company of Google, were the top three buyers of contracted power. Industrial Info is tracking U.S. operational windfarms, solar plants and battery energy storage systems (BESS), and related projects under construction, that are aimed at supplying corporate power purchase agreements (PPAs).
ACP's Clean Energy Powers American Business report highlights how companies are driving American clean-energy demand and boosting the U.S. energy transition by purchasing power from wind, solar and battery-storage facilities.
According to the report, even as PPA prices increased 30% year-over-year, corporations purchased nearly 20 gigawatts (GW) of related power in 2022, up 4 GW from any previous year.
The report said economic and environmental benefits, as well as growing pressure on corporations to meet sustainability targets, have led to a 100-fold increase in corporate clean power procurement over the last decade.
By the end of the year, more than 300 corporations had about 77 GW worth of wind, solar and battery-storage PPAs in place, the report said. Once operational, that is enough capacity to power the equivalent of more than 1,000 data centers, or 18 million American homes. Tech companies lead all industries with nearly 37 GW of contracted power.
According to the report, Amazon leads all corporations with more than 12.4 GW of contracted power (19% operational), followed by Meta with 8.7 GW (4.8 GW operational) and Google with 6.2 GW.
Late last year, Amazon announced it had signed an agreement with Brookfield Renewable Energy, a subsidiary of Brookfield Asset Management Incorporated (NYSE:BEPC) (Toronto, Canada), for 601.6 megawatts (MW) of wind and solar energy capacity to power three Amazon facilities in the U.S.
In May, AES Corporation (NYSE:AES) (Arlington County, Virginia) announced two PPAs to support Amazon's California operations, for a combined 450 MW of solar and 225 MW of four-hour duration battery energy-storage from AES' portfolio.
The ACP report noted utility-scale solar projects account for 58% of corporate contracted clean power and hybrid projects, including solar plus storage, are growing rapidly.
Earlier this month, Meta and Lightsource bp (London), a subsidiary of BP (NYSE:BP) (London, England), announced a PPA for all of the output from BP's $105 million Arche photovoltaic (PV) solar farm in Ohio, which just kicked off construction, about 180 miles from an operational Meta data center. Subscribers to the Global Market Intelligence (GMI) Power Project Database can click here for the Arche project report.
Subscribers to the GMI Industrial Manufacturing project and plant databases can click here for a plant profile on the data center, where an $150 million expansion project is expected to wrap up in March (see project report).
Meanwhile, Google has a PPA in place for the full output from the operational Great Western Windfarm in Oklahoma, which is jointly owned by Alliant Energy Corporation (NASDAQ:LNT) (Madison, Wisconsin) and EDF Renewables North America (EDF Renewables) (San Diego, California). The windfarm reached commercial operations in late 2016, and Google's contracted power supplies its nearby Pyror Data Center. Last year, Google announced the data center was operating at or near 90% carbon-free energy.
Industrial Info is tracking a combined $45.3 billion worth of active projects in the U.S. among the three tech giants. Click here for a list of Amazon projects, here for Meta projects, and here for those attributed to Google's parent company.
Other companies besides those in the tech field are purchasing clean power: according to the report, 35 energy companies announced 6.7 GW of procurements between 2014 and 2022; Shell plc (NYSE:SHEL) (London, England) contracted the most capacity over that period, with more than 1.2 GW.
Shell Energy North America has signed a 15-year PPA with EDF Renewables for 132 MW of solar power from the operational Maverick 7 portion of EDF's Palen-Maverick PV Solar Plant in Portland, Oregon. Subscribers can click here for the related plant profile.
According to the report, nine companies in the telecommunications industry account for 6.3 GW of procurements, followed by 44 companies in the food and beverage industry with 1.7 GW--nearly all of which is attributed to McDonald's Corporation (NYSE:MCD) (Chicago, Illinois).
The fast-food chain last month announced a PPA with Enel North America (Andover, Massachusetts), a subsidiary of Enel SpA (Rome, Italy), for solar power in Texas. For more information, see Industrial Info's December 19, 2022, article - Enel North America Expands Renewable Generation to Supply PPAs.
Subscribers to the GMI database can click here for all project reports mentioned in this article and click here for related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
ACP's Clean Energy Powers American Business report highlights how companies are driving American clean-energy demand and boosting the U.S. energy transition by purchasing power from wind, solar and battery-storage facilities.
According to the report, even as PPA prices increased 30% year-over-year, corporations purchased nearly 20 gigawatts (GW) of related power in 2022, up 4 GW from any previous year.
The report said economic and environmental benefits, as well as growing pressure on corporations to meet sustainability targets, have led to a 100-fold increase in corporate clean power procurement over the last decade.
By the end of the year, more than 300 corporations had about 77 GW worth of wind, solar and battery-storage PPAs in place, the report said. Once operational, that is enough capacity to power the equivalent of more than 1,000 data centers, or 18 million American homes. Tech companies lead all industries with nearly 37 GW of contracted power.
According to the report, Amazon leads all corporations with more than 12.4 GW of contracted power (19% operational), followed by Meta with 8.7 GW (4.8 GW operational) and Google with 6.2 GW.
Late last year, Amazon announced it had signed an agreement with Brookfield Renewable Energy, a subsidiary of Brookfield Asset Management Incorporated (NYSE:BEPC) (Toronto, Canada), for 601.6 megawatts (MW) of wind and solar energy capacity to power three Amazon facilities in the U.S.
In May, AES Corporation (NYSE:AES) (Arlington County, Virginia) announced two PPAs to support Amazon's California operations, for a combined 450 MW of solar and 225 MW of four-hour duration battery energy-storage from AES' portfolio.
The ACP report noted utility-scale solar projects account for 58% of corporate contracted clean power and hybrid projects, including solar plus storage, are growing rapidly.
Earlier this month, Meta and Lightsource bp (London), a subsidiary of BP (NYSE:BP) (London, England), announced a PPA for all of the output from BP's $105 million Arche photovoltaic (PV) solar farm in Ohio, which just kicked off construction, about 180 miles from an operational Meta data center. Subscribers to the Global Market Intelligence (GMI) Power Project Database can click here for the Arche project report.
Subscribers to the GMI Industrial Manufacturing project and plant databases can click here for a plant profile on the data center, where an $150 million expansion project is expected to wrap up in March (see project report).
Meanwhile, Google has a PPA in place for the full output from the operational Great Western Windfarm in Oklahoma, which is jointly owned by Alliant Energy Corporation (NASDAQ:LNT) (Madison, Wisconsin) and EDF Renewables North America (EDF Renewables) (San Diego, California). The windfarm reached commercial operations in late 2016, and Google's contracted power supplies its nearby Pyror Data Center. Last year, Google announced the data center was operating at or near 90% carbon-free energy.
Industrial Info is tracking a combined $45.3 billion worth of active projects in the U.S. among the three tech giants. Click here for a list of Amazon projects, here for Meta projects, and here for those attributed to Google's parent company.
Other companies besides those in the tech field are purchasing clean power: according to the report, 35 energy companies announced 6.7 GW of procurements between 2014 and 2022; Shell plc (NYSE:SHEL) (London, England) contracted the most capacity over that period, with more than 1.2 GW.
Shell Energy North America has signed a 15-year PPA with EDF Renewables for 132 MW of solar power from the operational Maverick 7 portion of EDF's Palen-Maverick PV Solar Plant in Portland, Oregon. Subscribers can click here for the related plant profile.
According to the report, nine companies in the telecommunications industry account for 6.3 GW of procurements, followed by 44 companies in the food and beverage industry with 1.7 GW--nearly all of which is attributed to McDonald's Corporation (NYSE:MCD) (Chicago, Illinois).
The fast-food chain last month announced a PPA with Enel North America (Andover, Massachusetts), a subsidiary of Enel SpA (Rome, Italy), for solar power in Texas. For more information, see Industrial Info's December 19, 2022, article - Enel North America Expands Renewable Generation to Supply PPAs.
Subscribers to the GMI database can click here for all project reports mentioned in this article and click here for related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
