Renewable Energy Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal when procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team get the optimum rate.

In May 2024, the Volume Weighted Average Price (VWAP) of Renewable Energy in different nations of Europe was as below:

a)      Italy

• Wind (on-shore): 91.21 GBP/MWh

• Solar: 85.12 GBP/MWh 

b)      UK

• Wind (on-shore): 70.01 GBP/MWh

• Wind (off-shore): 70.00 GBP/MWh

• Solar: 69.56 GBP/MWh 

c)       Germany

• Wind (on-shore): 58.36 GBP/MWh

• Wind (off-shore): 61.03 GBP/MWh

• Solar: 39.49 GBP/MWh

d)      Spain

• Wind (on-shore): 27.24 GBP/MWh

• Solar: 17.67 GBP/MWh

e)       France

• Wind (on-shore): 24.89 GBP/MWh

• Solar: 18.24 GBP/MWh

To gain a comprehensive understanding of other aspects of rate benchmarking, please subscribe to our services and get access to the complete report.

Labor cost is one of the key components of the total cost incurred while offering a product or service. Therefore, an organization must decide whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, renewable energy engineers working with Siemens Gamesa Renewable Energy, S.A.U. and ABB Ltd receive 10% - 15% higher base salary compared to the salary received by Renewable Energy Engineer working with Enel Green Power S.p.A. and Suzlon Energy Ltd. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the renewable energy category over the last two years:

In April 2024, Adani Green Energy Limited (AGEL) announced that it exceeded 10,000 megawatts (MW) in operating portfolio in India, providing the nation’s grid with green energy. The operational portfolio of AGEL includes 2,140 MW of wind-solar hybrid capacity, 1,401 MW of wind, and 7,393 MW of solar capacity. Over 5.7 million residential households will be powered by the company’s current operational capacity, which will also prevent over 20.9 million tons of carbon dioxide emissions yearly.

In February 2024, Acciona, SA announced that by 2025, it will construct and commission a new 412MWp solar project in Rajasthan, India. There will be over 750,000 of 545Wp each photovoltaic modules total in the solar farm. It will prevent the emission of 724,000 tons of CO2 yearly and generate about 800GWh of green electricity annually, enough to power 840,000 households. This is the largest project for the company in the nation where it has over four wind farms operational.

In January 2024, GE Vernova Group announced that it entered into a contract with Squadron Energy for onshore wind projects in Australia's New South Wales, with a capacity of 1.4 gigawatts (GW). Under the partnership, GE Vernova will provide 6 MW wind turbines and engineering, procurement, and construction expertise to Squadron Energy for the 414 MW Uungula Wind Farm. Additionally, GE Vernova will supply turbines for Squadron Energy's upcoming NSW projects, ‘Jeremiah’ and ‘Spicers Creek’ wind farms.