Clean Energy for Utility Market Report 2026

The clean energy for utility market size has grown strongly in recent years. It will grow from $349.05 billion in 2025 to $382.16 billion in 2026 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to rising dependence on fossil fuel based power generation, increasing electricity demand from urbanization, early government incentives for renewable energy adoption, expansion of centralized utility grid systems, growing awareness of environmental pollution impacts.

The clean energy for utility market size is expected to see strong growth in the next few years. It will grow to $553.85 billion by 2030 at a compound annual growth rate (CAGR) of 9.7%. The growth in the forecast period can be attributed to accelerating global decarbonization targets, increasing investments in renewable energy infrastructure, rising deployment of distributed energy systems, growth in utility scale energy storage solutions, increasing electrification of transport and industry sectors. Major trends in the forecast period include expansion of utility scale renewable energy integration, increasing adoption of smart grid infrastructure, rising deployment of hybrid renewable energy systems, growth of energy storage integration with renewables, increasing use of predictive maintenance in power generation assets.

Rising demand for energy storage is anticipated to propel growth in the clean energy for utilities market going forward. Energy storage refers to technologies that retain energy in various forms so it can be utilized later to balance supply and demand across power systems. Demand for energy storage is increasing as it helps balance electricity supply and demand by storing surplus power during low utilization periods and delivering it during peak demand phases. Clean energy within utility operations supports energy storage by creating fluctuating generation patterns, thereby contributing to the need for storage systems that preserve excess renewable electricity and ensure consistent supply when generation output declines, supporting grid reliability. For instance, in March 2025, according to the Energy Information Administration (EIA), a US-based government agency, in 2024, the United States’ total utility-scale battery storage capacity surpassed 26 gigawatts (GW). Therefore, the increasing demand for energy storage is contributing to and propelling the growth of the clean energy for utility market.

The rising electricity demand is expected to propel the growth of the clean energy for utilities market going forward. Electricity refers to the flow of electrons through a conductor that generates energy to operate various systems and devices. Electricity demand is expanding due to rapid urbanization, as growing urban centers require higher power consumption for residential needs, transportation networks, and infrastructure development. Clean energy for utilities supports electricity systems by enabling renewable generation and storage solutions that make power supply cleaner, more stable, and more efficient, thereby contributing to grid resilience and operational efficiency. For instance, in 2024, according to Ember-Energy. Org, a UK-based independent energy think tank, estimated data center electricity demand at 176 TWh in 2023, which is expected to grow by 8-55 TWh in 2024, corresponding to a 5%-31% increase. Therefore, the rising electricity demand is supporting and propelling the growth of the clean energy for utilities market.

In December 2024, TotalEnergies SE, a France-based integrated energy company, acquired VSB Group for an undisclosed amount. Through this acquisition, TotalEnergies aims to expand its renewable energy portfolio and strengthen its position in utility-scale wind and solar project development across Europe. VSB Group is a Germany-based renewable energy developer that provides clean energy solutions and services used by utilities.

Major companies operating in the clean energy for utility market are Iberdrola, Ørsted, RWE, NextEra Energy, GE Vernova, Enel Green Power, Engie, Brookfield Renewable Partners, EDP Renewables, Adani Green Energy, ACWA Power, ReNew Energy Global, Invenergy, NTPC Renewable Energy, Hecate Energy, Azure Power, ACME Solar Holdings, O2 Power, AMPIN Energy Transition, Soventix GmbH.

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

The clean energy for utility market consists of revenues earned by entities by providing services such as renewable power generation and supply, grid integration and energy management services, and energy storage solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The clean energy for the utility market also includes sales of energy storage systems, power inverters and converters, and grid-scale transformers and switchgear. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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