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Increasing Focus On Environmental, Social, And Governance (ESG) Criteria Driving The Market Growth Due To Sustainable And Responsible Business Practices: Powering Innovation and Expansion in the Global Renewable Power Purchase Agreement Market by 2025

11-12-2025 06:27 AM CET | Energy & Environment

Press release from: The Business Research Company

Renewable Power Purchase Agreement

Renewable Power Purchase Agreement

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What Is the Expected CAGR for the Renewable Power Purchase Agreement Market Through 2025?
The market valuation for renewable power purchase agreements has experienced substantial recent expansion, anticipated to climb from thirty-two point zero one billion dollars in two thousand twenty-four to thirty-five point four two billion dollars in two thousand twenty-five, reflecting a ten point six percent compound annual growth rate. This preceding period's upward trajectory is largely a consequence of escalating needs for environmentally sound energy solutions, supportive governmental financial motivations and grants, progress in renewable energy technologies, organizational pledges toward sustainability, and the climbing expense associated with electricity generated through traditional means.

What's the Projected Size of the Global Renewable Power Purchase Agreement Market by 2029?
The market pertaining to renewable power purchase agreements anticipates a swift expansion over the coming years, projecting a valuation of $53.65 billion by the year 2029, driven by a compound annual growth rate (CAGR) of 10.9%. This upward trajectory in the projection timeframe stems from several key factors: the increasing scope of corporate entities seeking renewable energy procurement, the broader uptake of hybrid PPA models, governmental directives pushing for net-zero achievements, the continual reduction in expenses associated with solar and wind energy generation, and the combination of energy storage solutions alongside renewable PPAs. Significant developments shaping this period involve the rise of trading platforms leveraging blockchain technology, the incorporation of artificial intelligence and the Internet of Things to facilitate energy management in real time, an escalation in corporate renewable PPAs, the introduction of hybrid renewable energy PPAs, and the implementation of PPAs linked to green hydrogen.

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Top Growth Drivers in the Renewable Power Purchase Agreement Industry: What's Accelerating the Market?
Anticipation surrounds the future expansion of the renewable power purchase agreement sector, largely fueled by the heightened consideration given to environmental, social, and governance (ESG) standards. These ESG criteria embody the escalating importance placed on company operations that are ethical, transparent, and focused on sustainability. The augmented attention to ESG factors stems from the surge in sustainable investing, prompting enterprises to embrace conscientious methods to draw in capital and bolster enduring worth. This greater emphasis on ESG compliance facilitates the uptake of renewable power purchase agreements by motivating entities to synchronize their energy sourcing with sustainability objectives, diminish their carbon emissions, satisfy stakeholder demands, and exhibit sound corporate oversight. For example, a September 2025 publication from KPMG, a professional services firm headquartered in the Netherlands, indicated that 56 percent of organizations utilize ESG data control panels for gathering, structuring, retaining, and examining non-financial data, with 68 percent reporting the application of conventional artificial intelligence or machine learning technologies. Furthermore, 63 percent of senior personnel anticipate that securing ESG verification will positively impact staff involvement and output, in contrast to a mere 47 percent of less experienced personnel who share this view. Consequently, the intensifying importance placed on environmental, social, and governance criteria serves as a principal catalyst for the burgeoning renewable power purchase agreement market.

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What Trends Will Shape the Renewable Power Purchase Agreement Market Through 2029 and Beyond?
Leading firms within the renewable power purchase agreement sector are prioritizing the integration of digital frameworks powered by blockchain and artificial intelligence, exemplified by modular solar thermal energy solutions, as a strategy to secure a superior market position. Such innovations are designed to capture and retain solar power as thermal energy within extended-duration storage units, thereby facilitating the on-demand provision of electricity and overcoming the inherent variability associated with conventional renewable sources. As an illustration, the US firm Exowatt unveiled the Exowatt P3 in September 2024, a scalable energy product engineered particularly for industrial uses and data centers, capable of retaining power for a full day, boasting an industry-first operational expenditure below four cents per kilowatt-hour, requiring minimal upkeep for quick setup, achieving total carbon neutrality, and utilizing materials sourced locally. This technological leap facilitates the seamless incorporation of renewable sources into existing grids, offering a dependable and economically viable energy stream that simultaneously lowers consumer energy costs and substantially decreases the market's carbon dioxide output, fundamentally altering the landscape of Renewable Power Purchase Agreements by boosting both dependability and environmental responsibility.

What Are the Main Segments in the Renewable Power Purchase Agreement Market?
The renewable power purchase agreementmarket covered in this report is segmented -

1) By Type: Solar Power Purchase Agreements, Wind Power Purchase Agreements, Hydropower Purchase Agreements, Biomass Power Purchase Agreements, Other Types
2) By Contract Duration: Short-Term Power Purchase Agreement (PPA), Medium-Term Power Purchase Agreement (PPA), Long-Term Power Purchase Agreement (PPA)
3) By Pricing Models: Fixed-Price, Index-Based, Hybrid-Price, Other Pricing Models
4) By Application: Renewable Energy Integration, Off-Site Power Procurement, Peak Load Management, Energy Cost Savings, Other Applications
5) By End-User: Commercial, Industrial, Utilities, Government, Other End-Users

Subsegments:
1) By Solar Power Purchase Agreements: Utility Scale Solar Power Purchase Agreements, Commercial Solar Power Purchase Agreements, Industrial Solar Power Purchase Agreements, Residential Solar Power Purchase Agreements
2) By Wind Power Purchase Agreements: Onshore Wind Power Purchase Agreements, Offshore Wind Power Purchase Agreements, Community Wind Power Purchase Agreements
3) By Hydropower Purchase Agreements: Large Hydropower Purchase Agreements, Small Hydropower Purchase Agreements, Micro Hydropower Purchase Agreements
4) By Biomass Power Purchase Agreements: Solid Biomass Power Purchase Agreements, Liquid Biomass Power Purchase Agreements, Biogas Power Purchase Agreements
5) By Other Types: Geothermal Power Purchase Agreements, Tidal Power Purchase Agreements, Wave Power Purchase Agreements, Hybrid Renewable Power Purchase Agreements

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Which Top Companies are Driving Growth in the Renewable Power Purchase Agreement Market?
Major companies operating in the renewable power purchase agreement market are Iberdrola, S.A, Ørsted 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.

Which Regions Will Dominate the Renewable Power Purchase Agreement Market Through 2029?
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 the renewable power purchase agreement market market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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