Utilities take note: 12 major U.S. corporations are sending you a message. They want more options for purchasing renewable energy.
Because utilities and energy suppliers are not meeting these companies’ ambitious renewable energy targets, the 12 companies have signed the Renewable Energy Buyers’ Principles in order to better communicate their purchasing needs and expectations to the marketplace. To this end, the World Resources Institute (WRI), the World Wildlife Fund (WWF) and Rocky Mountain Institute partnered to develop with the companies the principles, which spell out what the companies need in order to purchase more renewable energy, such as more procurement options and long-term contracts.
The companies — Bloomberg, Facebook, General Motors, Hewlett-Packard, Intel, Johnson & Johnson, Mars, Novelis, Procter and Gamble, REI, Sprint, and Wal-Mart — are hoping the principles will open up new opportunities for collaboration with utilities and energy suppliers to increase their ability to buy renewable energy.
With a combined renewable energy target of 8.4 million MWh per year through 2020, the 12 participating companies are seeking a market shift to achieve their sustainable energy goals. Large-scale buyers often have to work around traditional utilities to purchase renewables at competitive prices at the scale they need, increasing complexity and transaction costs.
The six Buyers’ Principles are: greater choice in procurement options; more access to cost competitive options; longer and variable-term contracts; access to new projects that reduce emissions beyond business as usual; streamlined third-party financing; and increased purchasing options with utilities.
These principles address several major obstacles large companies face in procuring and installing renewable energy. For example, large buyers find that current renewable energy markets are complicated to navigate and don’t deliver the products corporate customers are looking for. The sheer volume of renewable energy needed to meet their goals demonstrates both a clear demand and a market opportunity for any provider who can deliver what they need.
“We know cost-competitive renewable energy exists, but the problem is that it is way too difficult for most companies to buy,” said Amy Hargroves, director of corporate responsibility and sustainability for Sprint. “Very few companies have the knowledge and resources to purchase renewable energy given today’s very limited and complex options. Our hope is that by identifying the commonalities among large buyers, the principles will catalyze market changes that will help make renewables more affordable and accessible for all companies.”
The Buyers’ Group is not a power purchase group. It is an informal consortium of companies interested in overcoming the obstacles to buying renewable energy and sharing best practices. The group is expanding as more companies recognize the need for market change, and as more simple and cost-competitive renewable energy options appear, other innovative companies will join the original pioneers.
Source: Fierceenergy.com
