Watershed says customers have driven $500M into clean energy

Watershed says its customers have collectively pushed more than $500 million into new clean energy projects across six countries, including solar and wind farms that add nearly 400 MW of capacity. The company is positioning its cohort buying model as a way for mid-sized companies to fund projects at a time when corporate clean power purchasing has slowed.

Why it matters: - Watershed is pitching a path for mid-sized companies to finance new clean energy projects that are often too large, complex or expensive to buy alone. - The company says customer demand has helped unlock more than $500 million in new investment, with projects already built or under construction on grids that need more clean electricity. - The financing has avoided more than 375,000 tonnes of CO2e a year, which Watershed says is equivalent to taking more than 80,000 gas-powered cars off the road.

What happened: - Watershed said Tuesday that customers have driven more than $500 million in new clean energy investment. - The investment has funded more than 270 solar and wind projects across six countries. - The projects add almost 400 MW of capacity to the grid. - The projects avoid more than 375,000 tonnes of CO2e annually. - Albany International, Alterra Mountain Company, Dayforce and ServiceNow are the latest customers to invest through a Watershed virtual power purchase agreement, or VPPA. - Their cohort is funding new solar projects in Texas, Florida and Illinois. - The cohort is adding more than 130 MW of clean electricity capacity and avoiding more than 145,000 tonnes of CO2e annually. - The first project in that cohort is expected online this summer.

The details: - Watershed said the new projects are being built or are already under construction. - The company said the clean electricity is going to grids where it will replace fossil generation. - Watershed said corporate clean power purchasing agreements fell globally in 2025 for the first time in 10 years. - Watershed said just four companies accounted for nearly half of global activity last year. - Rising costs and the complexity of large energy transactions are pushing smaller buyers out of the market, according to Watershed. - Watershed's cohort-based buying model pools demand from multiple companies and matches buyers with new projects on the grids where clean power can displace the most fossil fuel use. - Morgan Stanley helped design the cohort-based model. - Buyers get a fixed cost over a set time period. - Watershed has also added clean power management tools in its platform. - Customers can manage energy attribute certificates in-product, see where electricity is covered and where gaps remain, and allocate certificates to their footprint.

Between the lines: - Watershed is making a broader case that climate procurement works better when demand is aggregated, especially for companies that cannot meet the minimum size of traditional renewable contracts. - The company is also trying to make clean power procurement easier to manage inside its software, which could help turn one-time transactions into a recurring workflow. - The announcement comes as competition for corporate clean power deals appears to be narrowing toward the largest buyers. - Watershed's message is that smaller and mid-sized companies can still shape the market if they buy together.

What's next: - Watershed said the first project in the latest cohort will come online this summer. - The company is likely to keep expanding cohort-based VPPAs as more customers look for fixed-price clean energy deals. - Watershed customers also continue to have access to pre-vetted carbon projects and virtual power purchase agreements through the platform.

The bottom line: - Watershed is using pooled corporate demand to open clean energy investing to companies that would otherwise be shut out of the market.