Renewable Power Purchase Agreement Market Report 2026

The renewable power purchase agreement market size has grown rapidly in recent years. It will grow from $35.42 billion in 2025 to $39.21 billion in 2026 at a compound annual growth rate (CAGR) of 10.7%. The growth in the historic period can be attributed to increasing corporate sustainability commitments, volatility in conventional energy prices, expansion of utility-scale renewable projects, supportive renewable energy policies, growing participation of commercial buyers.

The renewable power purchase agreement market size is expected to see rapid growth in the next few years. It will grow to $59.58 billion in 2030 at a compound annual growth rate (CAGR) of 11%. The growth in the forecast period can be attributed to increasing net-zero target adoption, rising demand for cost-stable clean energy, expansion of cross-border renewable contracts, increasing participation of industrial buyers, growing innovation in contract structuring. Major trends in the forecast period include increasing adoption of corporate renewable ppas, rising use of long-term fixed-price contracts, growing preference for off-site renewable procurement, expansion of hybrid pricing models, enhanced focus on risk mitigation and price certainty.

The increasing focus on environmental, social, and governance (ESG) criteria is expected to enhance the growth of the renewable power purchase agreement market going forward. Environmental, social, and governance (ESG) criteria refer to the growing emphasis on sustainable, ethical, and transparent business practices. The rise in environmental, social, and governance (ESG) criteria results from the growth of sustainable investment, as businesses adopt responsible practices to attract investors and enhance long-term value. The growing focus on environmental, social, and governance (ESG) criteria promotes the adoption of renewable power purchase agreements by encouraging organizations to align energy procurement with sustainability goals, reduce carbon footprints, meet stakeholder expectations, and demonstrate responsible corporate governance. For instance, in September 2025, according to a report published by KPMG, a Netherlands-based professional services company, 56 percent of companies use ESG data dashboards to collect, organize, store, and analyze non-financial data, while 68 percent reported using traditional artificial intelligence or machine learning. Additionally, 63 percent of leaders expect ESG assurance to improve employee engagement and productivity, compared to 47 percent of beginners. Therefore, the increasing focus on environmental, social, and governance (ESG) criteria is enhancing the growth of the renewable power purchase agreement market.

Leading companies in the renewable power purchase agreement market are emphasizing the adoption of blockchain and artificial intelligence-based digital platforms, such as modular solar thermal energy systems, to strengthen their competitive position. These systems harness and store solar energy as heat within long-duration thermal batteries, enabling on-demand electricity generation and overcoming the intermittency challenges associated with conventional renewable sources. For example, in September 2024, Exowatt, a U.S.-based renewable energy enterprise, launched the Exowatt P3 - a modular energy solution tailored for data centers and industrial operations. The Exowatt P3 features a scalable architecture, provides up to 24 hours of energy storage, and delivers power at an industry-leading cost of less than 4 cents per kWh. It allows for rapid deployment, requires minimal maintenance, and supports zero-carbon operations using domestically sourced materials. This innovation facilitates seamless renewable energy integration by ensuring a reliable and cost-efficient power supply, reducing operational expenses, and significantly lowering CO2 emissions. Such transformative technologies are redefining the future of renewable power purchase agreements by advancing both energy resilience and sustainability.

In February 2025, ONGC NTPC Green Private Limited (ONGPL), an India-based joint venture specializing in renewable energy solutions such as solar, wind, and energy storage, acquired Ayana Renewable Power Private Limited for approximately USD 2.3 billion (₹19,500 crore). Through this acquisition, ONGPL aims to accelerate India’s transition toward a low-carbon economy and substantially expand its renewable energy portfolio, supporting the Net Zero goals of its parent companies, ONGC and NTPC, by 2038 and 2050 respectively. Ayana Renewable Power is an India-based renewable energy platform with about 4.1 gigawatts of operational and under-construction solar, wind, and round-the-clock power assets, contracted with high-credit-rated off-takers including SECI, NTPC, GUVNL, and Indian Railways.

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, 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.

North America was the largest region in the renewable power purchase agreement market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the renewable power purchase agreement market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the renewable power purchase agreement market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The renewable power purchase agreement includes revenues earned by entities by services such as electricity usage analysis, educational workshops, procurement strategy, business case development, request for proposal (RFP) management, contract negotiation and execution. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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