New paradigms in U.S., European PPA markets driven by global policy shifts: Trio Renewables Market Report

Uncertainty drives the renewable energy market, while corporates turn to creative solutions

IRVINE , CA, UNITED STATES, April 23, 2025 /EINPresswire.com/ -- The first half of 2025 brought changes to the global renewable energy landscape, due in part to policies implemented by new U.S. political leadership, the global rise of AI and data centers, and shifting PPA markets across the globe. Trio’s inaugural Global Renewables Market Report: First Half 2025 focuses on the entire first half of the year, rather than each quarter as with previous reports, and emphasizes renewable market trends occurring in the U.S. and Europe.

Tariff-driven prices are the primary concern for renewables in the first half of 2025. Essential materials required to develop renewable projects include steel, aluminum, and solar modules, with nearly one quarter of these materials contributing to projects in the U.S. More items like piles, racking, cable, transformers, and inverters may also see substantial price hikes, making the future of new U.S. solar and wind projects uncertain.

The European PPA market is focused on risk mitigation, which is potentially leading developers to scale down their portfolios of renewable energy contracts. However, with Europe’s Corporate Sustainability Reporting Directive (CSRD) regulation, corporate demand for new renewable projects may increase in coming years.

Uncertainty in the Virtual Power Purchase Agreement (VPPA) market has led corporate buyers to try new options for implementing renewable energy. Onsite solar is one such option, which has the benefit of eliminating the risk of large-scale procurement, but the downside of lengthening the time it takes to make a significant difference in power procurement goals. Onsite solar projects consist of locating solar power generation at the facility where the energy is being consumed, as well as a contractual agreement between the seller and buyer of electricity. In Europe, onsite solar is helping commercial and industrial sites reach many operational, financial, reputational, and regulatory goals.

Community solar has become a popular alternative in the U.S. for those who do not want to adopt VPPAs but want to make a larger dent in their energy transition than with onsite solar. Community solar is owned and funded by a developer, and buyers can subscribe for 12-15 years to a portion of the project, where energy generation will be sent to the grid and corporate offtakers can be compensated for their participation in the program. Community solar will also deliver RECs, which contribute towards corporate sustainability goals. In Q2 2025, Illinois and New York will become popular states for implementing community solar, and Trio is advising clients in these areas if a community solar program is a good fit for their organization.

Companies that continue to secure VPPAs, which have become associated with more risk, are now seen as having the most long-term commitments to a renewable energy transition. Shorter-term and less riskier commitments may include companies purchasing Energy Attribute Certificates (EACs) or participating in utility REC programs. Corporates are enjoying the flexibility that these programs are offering, even though they may not offer as many long-term options.

The AI and data center boom is significantly driving electricity demand across the world, which still has uncertain impacts on the renewable energy market. On one hand, it may drive popularity of renewable energy production, especially since immediate solutions are needed, while other experts fear that this demand may revert electricity supply to traditional natural gas power generation methods. The second half of 2025 will likely see significant developments in this sector that will define the future of the AI space.

Despite current market uncertainty, projects are continuing to come online. In Europe, by 2026, 35 solar projects are expected to be completed while 12 wind projects should be finalized. In the U.S., by 2026, 10 solar projects and 2 wind projects should reach completion, indicating continued renewable energy progress.

Check out Trio’s report to find out more.

About Trio

Trio (formerly Edison Energy) is a global sustainability and energy advisory company that helps large commercial, industrial, and institutional organizations navigate the energy transition. Trio provides integrated strategy and implementation services – in sustainability, renewables, energy procurement, conventional supply, energy optimization and transportation electrification – to help the world’s largest organizations meet their strategic, financial, and sustainability goals. Visit trioadvisory.com.

Claire Underwood
Silverline Communications
claire@teamsilverline.com