A Reality Check of Corporate Procurement Trends in 2025

With corporates accounting for 83% of all signed PPAs in Europe in 2024, corporate offtakers are the main engine of growth in the PPA market.

As utility-led procurement slowed, corporates not only held firm in their renewable energy ambition, but they were the main driving force behind year-on-year deal growth. PPAs have become a primary instrument for meeting sustainability targets and reducing scope 2 emissions. To anticipate future market dynamics in Europe, it’s essential to understand the behaviours, motivations, and shifting priorities of corporate buyers.

Voluntary commitments in flux

Many corporates active in the PPA market are also signatories to voluntary sustainability initiatives such as RE100 and the Science-Based Targets initiative (SBTi). However, participation is showing signs of strain. As of mid-2025, only nine new companies have joined RE100 compared to 25 members in 2024. Of these, just one (ASOS) is headquartered in Europe, with none of the new signatories located in the U.S. Another notable entrant is Japanese battery manufacturer AESC, which has committed to sourcing 100% renewable electricity by the end of 2025 for its gigafactories in the UK, France, and Spain.

These schemes have historically underpinned corporate demand for PPAs. The slowdown in new entrants possibly reflects regional disparities in political momentum and regulatory clarity. In addition, new revised technical criteria, which introduced stricter requirements for renewable certificates, could have a significant role to play. From January 2024, RE100 tightened rules by limiting eligible assets to those under 15 years old and restricting certificate use to countries within the EU single market and AIB. Meanwhile, SBTi removed nearly a third of companies from its net-zero registry in 2024 for failing to submit validated targets within the required 24-month period. High-profile names such as Microsoft, Asda, and Marks & Spencer were delisted. The most common challenge cited by companies was the complexity of accounting for Scope 3 emissions. Despite this, around 60% of removed companies retained near-term emissions targets, indicating continued but evolving climate ambition. However, this does not necessarily signal a slowdown in ESG momentum but rather it reflects the increasing difficulty companies face in meeting the technical criteria and procedures set by these initiatives.

It is also worth noting that neither RE100 nor SBTi exclusively mandate the use of PPAs to meet renewable energy goals. Both frameworks permit the use of unbundled GoOs and Energy Attribute Certificates (EACs) to demonstrate renewable energy use. In the US, an emerging instrument is the Environmental Attribute Purchase Agreement (EAPAs). Unlike PPAs, EAPAs involve the procurement of renewable energy certificate alone, without the underlying electricity for new build assets. This strategy would still be recognised under RE100 and SBTi frameworks to support targets. Meta has shown growing interest in this model over the last 12 months, signing four EAPAs linked to more than 1.8 GW of new renewable capacity. While no EAPA deals have been publicly disclosed in Europe to date, conversations with market participants suggest rising interest from players in the IT sector.

Success stories from supermarket chains

While voluntary commitments have wavered for some, others have exceeded expectations. Tesco has sourced 100% of its electricity from renewable sources since 2020 and is now focusing on increasing its share of procured renewable energy through PPAs and diverging from unbundled procurement of GoOs. This strategy has made Tesco the leading corporate PPA buyer in GB in 2024 and one of the top ten corporate offtakers across Europe last year.

Similarly, Carrefour is advancing toward its 2030 target of 100% renewable electricity. According to its latest climate disclosures in their full year 2024 report, renewable sources accounted for just 3.7% of its electricity use, prompting the company to announce 534 MW of new PPAs across Europe – placing them fourth among Europe’s top ten corporate renewable offtakers in 2024, as tracked by Pexapark’s 2025 market outlook. These examples underscore how some retailers are translating climate pledges into tangible procurement actions.

Surging data centre demand fuels PPA growth

The IT sector remains the most dominant force in corporate PPA procurement, maintaining its lead in 2024 by accounting for 30% of announced capacity, or 3.8 GW. This trend could accelerate in 2025, driven by soaring electricity demand from data centre expansion and AI development. Google’s latest environmental report highlights a 50% rise in total emissions since 2019 and a 37% year-on-year increase in Scope 2 emissions which are indirect greenhouse gas emissions from the generation of purchased energy. This has been largely due to rapid data centre growth outpacing the deployment of carbon-free energy (CFE) projects. While the company has ended its previous operational carbon neutrality commitment, it now targets net-zero emissions by 2030, focusing on 24/7 CFE procurement. Markets such as Poland, Ireland, and Italy — where Google has large facilities but low hourly CFE match rates — are expected to see increased procurement activity.

Meanwhile, Microsoft plans to grow its data centre capacity by 40% over the next two years, and Amazon is investing heavily in new infrastructure across Europe. With electricity demand from hyperscalers continuing to surge, the IT sector is expected to remain the largest driver of corporate renewable procurement in the years ahead. The 24/7 CFE Coalition, a coalition of large corporate energy buyers, including companies like Google recently published updated technical guidelines outlining key principles for energy buyers. Notably, the use of hourly timestamped EACs to match renewable consumption on a real-time basis.

Although corporate procurement strategies continue to evolve, one constant is the firm stance of EU policymakers. The Clean Industrial Deal, including the recently launched Clean Energy Investment Strategy, reinforces the role of corporate PPAs in achieving Europe’s decarbonisation goals.