Analysts expect strong growth in renewable and climate-friendly technologies by 2035
The transition to carbon neutrality in the commercial and industrial sectors is gaining significant momentum thanks to technological innovations, regulatory measures, and sustainability initiatives.
The transformation of the energy landscape is being driven by digitalization, growing climate awareness, and innovative procurement models such as power purchase agreements. Market experts expect double-digit growth rates for solar energy and other low-emission solutions by the mid-2030s.
The commercial sector's pioneering role in the energy transition
LONDON - The commercial and industrial (C&I) sector is becoming the pacesetter of the global energy transformation.
New funding programs and technological breakthroughs are opening up numerous avenues for companies to reduce their carbon footprint. Legal requirements and market pressure are increasingly motivating companies to improve their energy efficiency, electrify processes, and switch to climate-friendly energy sources.
We are witnessing a fundamental realignment of energy procurement strategies: Companies are increasingly relying on digital tools for emissions measurement, energy management, and real-time coordination between supply and demand. Despite geopolitical uncertainties, experts expect economic factors to drive CO₂ reduction in the corporate sector over the coming decade, with double-digit annual growth rates.
Sustainability commitments take center stage
Corporate responsibility and accountability for climate impacts are at the heart of this development.
Standardized climate reports promote transparency and compliant corporate governance. Stricter regulations on indirect emissions (Scope 2) are accelerating the transition to environmentally friendly energy sources. At the same time, mandatory disclosures on supply chain emissions (Scope 3) – established by international climate regulatory authorities and standards – are shifting the focus to sustainability throughout the entire value chain. The European Sustainability Reporting Directive (CSRD) further reinforces this trend by requiring companies to report on direct and indirect relationships within their value chain.
"The next ten years offer companies a unique opportunity to intensify their decarbonization efforts," emphasizes a leading growth expert. "With falling technology costs and increasing climate responsibility at the corporate level, those companies that invest early in energy optimization and sustainability will gain a competitive advantage."
Dynamic Market Growth Expected
Driven by falling costs, political incentives, and ambitious sustainability goals, the global market for decentralized photovoltaics in the corporate sector is expected to peak by 2030 with annual additions of over 115 gigawatts. After 2030, growth in established markets is likely to slow, while emerging regions in Asia, Latin America, Africa, and the Middle East will experience significant growth.
Corporate Power Purchase Agreements (PPAs) are seen as a key catalyst for the energy transition. A growing number of industries are using these agreements to secure long-term sustainable energy and hedge against market volatility. Innovative models such as multi-buyer PPAs, the integration of energy storage, and alternative energy sources such as geothermal and nuclear power are fundamentally changing the way companies procure energy.
Outlook
Standardization initiatives at the corporate and government levels are facilitating the implementation of PPAs, reducing costs, and accelerating contract closings. Market observers predict that corporate PPAs will drive more than a quarter of global wind and solar development by 2035—thus playing a key role in the energy transformation.