Renewable Power Purchase Agreement Industry Analysis Report 2025: Key Trends, Drivers, and Forecast Insights
The Business Research Company
The Business Research Company’s Renewable Power Purchase Agreement Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034
LONDON, GREATER LONDON, UNITED KINGDOM, November 17, 2025 /EINPresswire.com/ -- Renewable Power Purchase Agreement Market Growth Forecast: What To Expect By 2025?
The market size for renewable power purchase agreements has been expanding at an accelerated pace in the past few years. Its growth is forecasted to rise from $32.01 billion in 2024 to $35.42 billion in 2025, with a compound annual growth rate (CAGR) of 10.6%. The exceptional growth observed during the historic period is a result of factors such as the escalating demand for clean energy, government benefits and subsidies, advancements in renewable energy technology, corporate sustainability pledges, and the rising costs of electricity derived from traditional sources.
The market for renewable power purchase agreements is predicted to expand significantly in the forthcoming years, reaching a value of $53.65 billion in 2029, with a compound annual growth rate (CAGR) of 10.9%. This growth within the predicted timeline can be linked to factors such as the broadening of corporate renewable procurement, the increased utilization of hybrid PPA structures, the push for net-zero targets through regulatory mandates, the decrease in the costs of solar and wind power, and the incorporation of energy storage into renewable PPAs. Some of the major trends anticipated during this period include the use of blockchain for energy trading platforms, the joint application of AI and IoT for real-time energy management, the expansion of corporate renewable PPAs, the emergence of hybrid renewable energy PPAs, and the advent of PPAs connected with green hydrogen.
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What Are Key Factors Driving The Demand In The Global Renewable Power Purchase Agreement Market?
The emphasized concentration on environmental, social, and governance (ESG) criteria is anticipated to boost the expansion of the renewable power purchase agreement market. ESG criteria is all about the surging attention on sustainable, ethical, and transparent business methods. The escalation in ESG criteria is attributed to sustainable investment, where businesses adopt accountable practices to entice investors and maximize long-term value. Intensified focus on environmental, social, and governance (ESG) criteria bolsters the adoption of renewable power purchase agreements by motivating organizations to match energy procurement with sustainability objectives, lessen carbon emissions, meet stakeholder anticipations, and portray responsible corporate governance. For instance, a report published by KPMG, a Netherlands-based professional service firm, in September 2025 indicated that 56% of companies use ESG data dashboards to assemble, categorize, store, and scrutinize non-financial data, while 68% reported the use of conventional AI or machine learning. Also, 63% of leaders predict ESG assurance will enhance employee engagement and efficiency, compared to only 47% of novices. Thus, the amplified concentration on environmental, social, and governance (ESG) criteria fuels the growth of the renewable power purchase agreement market.
Who Are The Leading Players In The Renewable Power Purchase Agreement Market?
Major players in the Renewable Power Purchase Agreement Global Market Report 2025 include:
• 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
What Are The Upcoming Trends Of Renewable Power Purchase Agreement Market In The Globe?
Leading entities in the renewable power purchase agreement market are prioritizing the integration of blockchain and artificial intelligence embedded digital platforms like modular solar thermal energy systems, with an aim to create a competitive edge. By storing solar energy in long-duration thermal batteries, these systems deliver electricity on request and mitigate the irregularity problems seen in conventional renewables. For instance, Exowatt, headquartered in the U.S., unveiled its energy solution for data centres and industrial usage, the Exowatt P3, in September 2024. With its expandable structure, ability to store energy for as long as 24 hours, and efficient operation cost of less than 4 cents per kWh, the Exowatt P3 delivers speedy installation, needs minimal maintenance, ensures zero carbon emissions, and utilises local resources. This development facilitates integration of affordable and reliable renewable energy, leading to significant reduction in energy costs and in CO2 emissions in the market. This transformative technology is reshaping the Renewable Power Purchase Agreement space by boosting energy dependability and sustainability.
Analysis Of Major Segments Driving The Renewable Power Purchase Agreement Market Growth
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
View the full renewable power purchase agreement market report:
https://www.thebusinessresearchcompany.com/report/renewable-power-purchase-agreement-global-market-report
Which Region Is Expected To Lead The Renewable Power Purchase Agreement Market By 2025?
In 2024, North America led the way as the largest region in the renewable power purchase agreement market. In the forecast period, the report predicts the fastest growth in the Asia-Pacific region. The scope of the renewable power purchase agreement market report encompasses the following regions: Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
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