Clean energy procurement is entering a period of heightened complexity. Between shifting regulations, rising development costs, and intensifying competition for supply, buyers who wait may face fewer options and steeper prices for power purchase agreements (PPAs). Some buyers may be tempted to wait for more policy clarity, but recent trends show that those who act now are securing quality deals before market conditions tighten further.
Recent requests for proposals (RFPs) on the LevelTen Platform have drawn hundreds of PPA offers from developers. One buyer received offers from over 300 projects in a single round. The opportunity is real, but it’s already becoming more competitive.
Demand remains high as corporate buyers, utilities, and retail electricity providers move now to secure PPAs at predictable rates.
With market uncertainty and rising development costs, those who act now have access to better pricing and availability than those who wait. Here’s why acting now is the smarter move.
Regulatory Uncertainty and Its Impact on Pricing
While no one can predict exactly how federal policies will evolve, indicators suggest that the cost of development is likely to rise. Potential delays in permitting reform, changes in tax incentives, and shifting regulatory frameworks could introduce added complexity to clean energy procurement.
While a full repeal of the Inflation Reduction Act (IRA) appears unlikely, certain tax credit provisions could be modified or scaled back. At the same time, separate policy shifts related to tariffs and permitting reforms may increase costs and slow development timelines. New tariffs and policy shifts may force developers to rely more on U.S.-sourced materials, increasing costs and lengthening procurement and installation timelines. Additionally, interconnection approvals for new wind and solar projects may take longer as they face lower priority in transmission queues, and some permitting processes could experience delays.
However, precedent suggests that finalized deals tend to be upheld even if policies shift. As an example, buyers who act now to secure current tax credit structures ensure they benefit from existing financial incentives even if policies change. Our recent article, “Clean Energy Tax Credits: Is Now the Time to Buy?” further breaks down why experts think a full repeal is unlikely, why acting now may be safer than waiting, and what corporate buyers are doing to mitigate risk.
Industry experts anticipate that while demand for clean energy will remain strong, buyers should account for the possibility of higher financing costs, evolving domestic content requirements, and a more complex project development landscape.
Demand for Clean Energy Isn’t Slowing Down
Despite uncertainties, clean energy continues to grow; according to Grid Strategies, nationwide electric demand is forecast to increase by 15.8% by 2029. The sector has weathered policy shifts before, and corporate buyers are still driving procurement forward. Given this dynamic, buyers who move swiftly may have an advantage in securing more favorable terms before market conditions shift further.
This sustained growth is being driven by several key factors:
- AI and cloud computing drive rapid data center expansion
The rise of artificial intelligence and cloud computing is dramatically increasing energy demand. According to recent findings from the Lawrence Berkeley National Laboratory, data centers alone could triple their energy consumption by 2028 and account for 12% of domestic energy use.
- Electrification and industrial growth are fueling demand across sectors
The electrification of transportation, heating, and heavy industry—combined with a resurgence in domestic manufacturing—is accelerating energy use and increasing reliance on clean power. New industrial facilities and manufacturing hubs across North America and Europe are placing even greater strain on grid resources.
- Corporate sustainability targets
Businesses remain committed to ambitious decarbonization goals, maintaining strong demand for clean power purchase agreements (PPAs) despite evolving policy landscapes.
According to the Clean Energy Buyers Association (CEBA), corporate buyers signed deals for over 13 gigawatts of clean energy despite increasing PPA prices. This large-scale procurement activity is just a start for RE100 members, who will collectively need to procure more than 290 terawatt hours of renewable energy to keep their public 2030 goals on track, according to BloombergNEF.
Buyers with line-of-sight to a signed PPA should move forward expeditiously before more buyers enter the market and suppliers meet added hurdles to development.
What We’re Seeing in Recent Renewable Energy RFPs
The latest RFPs launched on the LevelTen Platform have been some of the strongest-performing processes we’ve observed. Developers remain eager to work with well-prepared buyers, but the window of opportunity is beginning to narrow as pricing and availability shift.
Here’s what we’ve seen in just the past few quarters:
- A large corporation launched a multi-market RFP in North America and received over 300 offers from more than 100 developers—a clear sign of a competitive and responsive market.
- An experienced buyer with urgent clean energy targets launched a LEAPTM RFP and received more than 100 offers.
- In Europe, a major beverage brand launched an RFP and saw 75+ offers from numerous developers, reflecting sustained interest from developers despite rising project costs.
- A sustainability advisor representing a buyer with demand under 150,000 MWh attracted 175+ offers, proving that smaller buyers can still access a robust range of options.
These examples show that strong opportunities still exist for those ready to act, but they may not last.
Contracting Through Uncertainty
Uncertainty around tariffs and tax credits doesn’t have to halt progress. Buyers and developers are using proven tools—like Change of Law provisions and Conditions Precedent (CPs)—to keep deals moving while accounting for potential policy shifts.
We’re also seeing contracts evolve to address supply chain risks, especially for developers relying on global components. While U.S. suppliers face less tariff exposure, domestic capacity alone can’t meet demand, making flexibility essential.
Even in uncertain times, contracts can be structured to protect against risk and support forward momentum.
Act Now Before Costs Rise Further
Many major buyers and their advisors are already moving forward, and if demand begins to outstrip supply, PPA prices are likely to rise. If your organization has viable procurement options available, now is the right time to act.
Secure your clean energy deal today while favorable opportunities remain in the pipeline.
Contact us at info@leveltenenergy.com
