Voluntary green power, for this report, refers to renewable energy procurement by retail electricity customers above what is otherwise provided by load-serving entities. In this year’s report “Status and Trends in the U.S. Voluntary Green Power Market: 2022 Data” by NREL there are two topics of interest that could affect future trends in the U.S. voluntary green power market. The first topic relates to the emergence of three strategies to match green power procurement to buyers’ electricity demand and the second addresses the implications of the federal Inflation Reduction Act (IRA) for the voluntary green power market.
The report concludes:
- Green power demand continues to grow across all products; however, power purchase agreements and green pricing and tariffs are growing at a higher rate than other products in terms of sales, and community choice aggregation is growing at a higher rate in terms of customer acquisition.
- Voluntary green power demand could overtake compliance demand soon.
- Future green power procurement will be based on diverse matching strategies.
- The IRA will alter the course of the future green power market.
- The most direct impacts will come from extended and expanded tax credits, which will reduce project costs and drive a significant increase in future renewable energy deployment.
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