Voluntary Green Power Procurement

Utility-scale renewable energy project deployment depends on the availability of up-front capital. NREL examined the role of long-term contracting for utility-scale wind and solar energy projects in the United States. Unlike previous studies that primarily focused on supply-side factors, this analysis focused on demand.

The study specifically assessed potential demand from S&P 500 corporations to enter into power purchase agreements for renewable energy in the United States, alongside demand from utilities driven by state renewable portfolio standards and voluntary climate pledges. NREL estimated demand by identifying common characteristics among existing off-site renewable energy owner purchase agreements buyers, including their credit rating.

NREL found that potential corporate demand could reach as much as 358 terawatt-hours by 2024. In addition to corporate buyers, utilities could contribute significantly to future demand through state mandates and voluntary climate pledges. Importantly, the analysis suggests that demand from corporate and utility offtakers—entities that agree to purchase power from renewable energy projects—may act as a constraint on renewable deployment, in addition to supply-side barriers.

The findings indicate that while utilities remain a dominant source of demand for renewables, corporate demand is growing. Meeting mid-case deployment scenarios for renewable energy by 2035 will require utilities to meet their mandated and voluntary demands, along with sustained corporate demand growth of at least 11% per year.

U.S. Renewables Demand (TWh)

NREL has evaluated utility green pricing programs and published 2023 rankings. The 2023 and previous annual rankings provide assessments of utility green pricing programs in terms of green pricing customers and sales as well as the percentage of green pricing customers and the percentage of green power sales.

Status and Trends in the Voluntary Market Report (2022 Data)

In 2023, about 9.7 million customers procured approximately 319 million MWh of renewable energy through green power markets. The report covers trends in utility green pricing programs, utility renewable contracts, competitive suppliers, unbundled renewable energy certificates, community choice aggregations, and power purchase agreements. Some of the report data are available in Excel through the NREL Data Catalog.

NREL has developed a comprehensive list of renewable energy procurement options available by utility and municipality nationwide. NREL has also developed a separate list of active utility green pricing programs with more detailed information on these programs. To NREL’s knowledge, these lists identify all active procurement options or green pricing programs nationwide. We welcome your input; if you see that a program is missing or inaccurate, please contact Sushmita Jena.