Large companies should have an energy strategy, whether they are in an energy-intensive industry or not. The approach that views energy merely as a cost to be managed and overlooks the opportunities to create new value, reduce risk, and bolster resilience is quickly becoming outdated. The energy transition is gaining momentum, and renewable energy is the clean engine driving it forward.
While the end goal of an ambitious carbon strategy is to achieve Net Zero, the many different decarbonization technologies and methods competing for attention can be a source of confusion. The risk is then that companies hesitate to act due to concerns about investing in the right technology or signing a long-term contract. At the end of the day, corporate consumers want their energy supply to be secure, reliable, accessible and affordable. This infographic addresses those concerns by explaining the available options and pathways.
Demand is high. The cost of inaction is higher than investing in a green future. Secure a competitive advantage now.
Navigate Multiple Options
Assess current and future needs to find the optimal mix for your location.
Build Action Plan
A holistic approach is key to move from strategy to implementation.
Benefits
Reduced Carbon Emissions
Renewable energy production doesn’t generate GHGs – that’s good for the climate, health, decarbonization targets, and avoiding carbon pricing
Managed Energy Costs
The cost of some renewable energy solutions may be lower than fossil fuels & is declining. It hedges against fuel price volatility, while long-term supply contracts can lock in a price advantage
Enhanced Brand Value
Embracing renewable energy enhances brand reputation and value by showing a commitment to sustainability, meeting customer, employee, and investor expectations
Stability of Supply
Renewables are unlimited and foster energy independence. Investments in grid infrastructure, supply and demand flexibility, and storage will gradually stabilize supply
There are Four Main Renewable Energy Sourcing Options
Unbundled EACs
Energy Attribute Certificates (EACs), such as Guarantees of Origin, Renewable Energy Certificates, or I-RECs
Spot purchase
Green Retail
Delivery of physical electricity and certificates
Contract: 1-3 or 5-15 years (location dependent)
Corporate Power Purchase Agreements (PPAs)
Physical and virtual power purchase agreements with existing or new-build RE assets
Contract: 3-20 years (location dependent)
Direct Investment
Self-owned assets such as onsite solar PV installation
Typical asset lifetime: 10-25 years
Apply the Right Selection Criteria
Feasibility
concerns availability of options, complexity and time needed to implement, and liquidity.
Economics
concerns the costs, profitability, investments or financial commitments, payback period, term length, accounting impacts (balance sheet, profit & loss), and commercial complexity.
Quality
concerns additionality — sourcing from new or growing renewables projects needing financial support — temporality (future-proofing), load coverage, technical complexity and risks.
Decarbonization Roadmap Via Renewable Energy Supply
This is what a diversified sourcing roadmap may look like, phasing in renewable energy and phasing out brown (fossil fuel) energy.
Know What Sourcing Options Are Available in Your Region
Most are available in the Americas and Europe. APAC & Africa is a different story. Regulations change quickly, creating an obstacle to availability.
Renewable electricity sourcing solutions available in a selection of European and North and South American markets
Renewable electricity sourcing solutions in a selection of Asian and African markets
Guidance and Standards for Accounting and Reporting
Industry bodies use conflicting criteria. When designing a roadmap, know what matters to the industry body you will report to, and align procurement accordingly.
We Can Guide You
We provide renewable energy solutions that can combine the renewable energy sourcing levers to build your portfolio at scale.
Closing Insights
As social and business trends gravitate toward sustainability, expectations about corporate carbon performance are growing, pushing energy use up the corporate agenda. Management of carbon emissions and energy sourcing are an increasingly important differentiator for corporate customers, investors and consumers, and can profoundly impact a company’s long-term financial health. With renewable energy sourcing playing such a key role in this paradigm, it is critical to enter this new era armed with a coherent renewable energy strategy.
Get In Touch
Let’s work together to plan a renewable energy strategy.
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