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S&P: U.S. corporate renewables contracting surged 45% over past year

February 21, 2023

S&P Capital IQ ($):

Renewable energy capacity contracted by U.S. corporations soared 45% in the past 12 months, epitomizing the energy supply and demand tectonic shifts now magnified by greater energy security concerns. S&P Global Commodity Insights found that all tracked business sectors boosted their green energy portfolio markedly, with increases ranging from 16% to 79%.

Corporate renewables remain on a steep upward trajectory, setting another record for contracted capacity in the past 12 months and shining a light on trends pointing to further momentum.

The implications are manifold. With businesses accounting for half of global electricity usage, the corporate appetite for green energy helps fuel the development of solar and wind projects, strongly contributing to a rising share of renewable energy on the grid. With these mechanics now boosted by the Inflation Reduction Act, a green energy boom appears on the horizon.

Aside from environmental considerations, this evolution could prove critical strategically. As corporations' renewable energy procurements rise, so does their independence from the geopolitics of fossil fuels. With renewables theoretically a deflationary force, businesses at the forefront of the energy transition are building a competitive edge while giving policymakers and central banks a hand in fighting inflation.

[Adam Wilson and Tony Lenoir]

More: 200-plus deals power 24.5-GW corporate renewable capacity surge in 2022

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