Insights from CEBA: How enterprises can navigate the shifting energy landscape

In today's rapidly evolving energy landscape, strategic procurement decisions can significantly impact an enterprise's bottom line. Our energy advisory team recently attended the Clean Energy Buyers Association (CEBA) Spring Summit, where CEBA CEO Rich Powell emphasized that "corporate energy customers are not just buyers of clean energy; they are market-makers who drive 21st-century industries."

Here are five critical insights from the Summit — and CEBA’s State of the Market report — that can help guide your organization's energy strategy.

1. Corporate buyers have reached the 100 GW milestone, transforming the energy market

Commercial and industrial customers have now brought total clean energy deal capacity to 100 GW, according to the CEBA State of the Market report. This isn't just a number — it represents a fundamental market shift with nearly 3% of clean energy generation on the US grid coming from corporate procurement.

What this means for your business: Renewable energy procurement has evolved from a sustainability initiative to a mainstream business strategy. This market maturity means more established processes, greater diversity of options, and increasing sophistication in how organizations approach energy sourcing decisions.

2. Electricity demand is expected to surge 35-50% by 2040

According to the CEBA report, electricity demand is projected to grow substantially over the next 15-20 years, driven by increased digitalization, electrification, and AI computing demands across multiple sectors.

What this means for your business: This surge creates both urgency and opportunity. With most corporate clean energy commitments targeting 2030, the window for securing favorable contracts is narrowing. As demand increases, we anticipate significant price increases due to competition for limited renewable assets. Forward-thinking organizations should consider accelerating procurement timelines to lock in current favorable rates.

3. Tax credit policy changes could drastically impact corporate energy costs

One of the most discussed topics at CEBA was the potential repeal of federal clean energy tax credits and its direct implications for corporate energy budgets. If federal clean energy tax credits are repealed, CEBA's study shows business electricity rates would increase dramatically across many states, with impacts that not only persist but intensify over time.

What this means for your business: For enterprises that operate across multiple states, these varying increases could significantly impact expenses. Organizations locked into fixed-rate energy contracts may be protected temporarily, but upon renewal would face these substantially higher rates. Developing a strategic approach to energy procurement now will position your organization to take advantage of favorable pricing windows when they appear, providing a potential hedge against these price increases.

4. Energy procurement strategies are diversifying beyond traditional PPAs

While solar energy leads corporate procurement (70% of new capacity) according to the CEBA State of the Market report, organizations are increasingly diversifying not just the types of generation they procure, but also how they structure their energy strategies.

The broader industry trend shows enterprises moving beyond simply focusing on generation types to consider comprehensive energy strategies. These diversified approaches can include options like retail energy supply optimization, tariff analysis, demand-side management, and distributed energy resources alongside traditional power purchase agreements.

What this means for your business: This diversification offers more options to match your specific energy needs, risk profile, and organizational structure. Rather than pursuing a one-size-fits-all approach, forward-thinking enterprises are creating customized energy procurement portfolios that might include:

• Community solar as an accessible entry point without the complexity of traditional PPAs
• Retail energy supply optimization to manage costs in deregulated markets
• Tariff optimization to ensure you're on the most advantageous rate structures
• Demand-side management to reduce peak charges and improve load profiles
• Distributed energy resources for on-site generation and resilience
• Comprehensive data solutions that support sustainability reporting requirements

Organizations should work with energy advisors who can provide this full spectrum of solutions rather than focusing solely on one procurement approach. This comprehensive strategy allows you to customize solutions based on your specific facilities, locations, and business objectives.

5. Infrastructure constraints will shape future procurement options

A significant finding from the CEBA report is that transmission capacity must double by 2050 to ensure grid reliability. According to the latest U.S. National Transmission Planning Study, this ambitious goal can only be achieved with substantial permitting reform.

This infrastructure constraint will increasingly influence the availability and pricing of renewable energy projects. In regions with grid congestion, project development may slow and prices could increase as developers face higher interconnection costs and longer timelines.

What this means for your business: When evaluating procurement options, it's important to understand how these broader infrastructure challenges might affect prices and availability in different markets. While the specifics of transmission planning are highly technical, being aware of these constraints can inform your organization's approach to energy procurement timing and location strategies.

Recommendations for forward-thinking enterprises

Based on these insights, our energy advisory team recommends the following actions:

1. Consider procurement timing strategically with a data-driven approach that accounts for market conditions rather than arbitrary timelines
2. Diversify energy procurement strategies to include options beyond traditional PPAs that may offer better economics
3. Factor regional variations into strategy, as business impacts of policy changes vary significantly by state
4. Focus on total cost optimization rather than just generation costs by considering demand charges, capacity costs, and other energy expense components
5. Leverage energy data for operational efficiency, using utility cost and consumption information to identify cost-saving opportunities beyond procurement

How Arcadia can help

Arcadia's Energy Procurement Advisory solution provides the expertise and tools needed to navigate these complex market dynamics. Our team offers detailed cost breakdowns of different rate structures, helps you understand how market changes might affect your energy costs, identifies the optimal mix of procurement strategies for your portfolio, and monitors market conditions to help you make informed decisions.

By partnering with Arcadia, your organization can develop energy strategies that align with your business objectives while effectively responding to evolving market conditions. Our comprehensive approach ensures you're considering all factors impacting your energy costs, not just the generation rate.