Corporate commitments are critical to help meet growing energy demands

WASHINGTON, Sept. 30, 2025 /PRNewswire/ — Companies that voluntarily buy clean energy play a critical role in clean energy projects being built. Without extensive voluntary commitments by corporate buyers to purchase clean energy, fewer projects will be financed and built, and the U.S. will struggle to meet growing energy demand. 

A new study commissioned by the Clean Energy Buyers Association (CEBA) provides some of the strongest data to date that long-term corporate virtual power purchase agreements (VPPAs) are crucial in getting new renewable energy projects off the ground.

Misti Groves, senior vice president of U.S. Strategy at CEBA, noted, “It confirms that corporate buyers are critical to ensuring the U.S. can build enough clean energy at the pace and scale that’s needed to meet skyrocketing power demand from the growth in artificial intelligence, electrification, and a resurgence in U.S. manufacturing.”

David Groleau, executive vice president of Pine Gate Renewables, which develops, owns, and operates utility scale solar and energy storage projects in the U.S., said, “Corporate buyers are the backbone of clean energy deployment, anchoring project financing and shaping the future of reliable, cost-effective power.”

The study, which was completed by renewable energy data company REsurety, analyzed the economic performance of 251 wind and solar projects across three major power markets — Electric Reliability Council of Texas (ERCOT), Midcontinent Independent System Operator (MISO), and PJM Interconnection — and found that revenues for such projects often face significant financial headwinds without corporate buyer support. 

Corporate clean energy buyers often enter into long-term contracts with clean energy projects to purchase the future electricity produced for a fixed price, through a contract called a VPPA. It’s only possible to finance a project if the loan provider knows who will buy the electricity and at what price, so without these contracts, projects won’t get the necessary loans to finance development. 

REsurety found that VPPAs reduce the number of projects facing financial distress — defined as a negative cash flow — by 90% in MISO and PJM, and 80% in ERCOT. 

“In this next year, as renewable energy projects aim to meet deadlines for tax credits, the support and cooperation of corporate buyers will give developers the confidence to advance spending to secure tax credits to reduce the cost of renewable energy,” said Joan Hutchinson, managing director of Offtake Advisory, Marathon Capital.

Renewable energy certificates (RECs) also have an impact, reducing projects in financial distress by 30% and providing additional stable revenue. 

Over the past decade, corporate buyers have become a steadying force in the U.S. clean energy market, accounting for more than 40% of new U.S. clean energy capacity additions. Maintaining that momentum is essential to ensuring that U.S. clean energy electricity grows at the pace and scale needed to meet the momentous challenge of increasing demand.

“The acceleration of corporate purchases from clean energy projects transformed the U.S. market over the past 10 years, providing developers and owners long-term, stable revenues on projects and a view on future demand to help maintain continued growth,” said Emily Cohen, chief commercial officer of Primergy. “As new markets evolve, we are excited to see more corporates buying energy across the country to bring the benefits of new energy resources.”

The Clean Energy Buyers Association is a business trade association that activates a community of energy customers and partners to deploy market and policy solutions for a carbon emissions-free energy system. CEBA’s more than 400 members comprise one-fifth of the Fortune 500, represent more than $33 trillion in market capitalization, and include institutional energy customers of every type and size — corporate and industrial companies, universities, and cities. For more information, visit cebuyers.org and follow us on X and LinkedIn. 

Contact:
Susan Buehler, [email protected]

SOURCE Clean Energy Buyers Association (CEBA)