Global firms are progressively addressing sustainability issues due to customer and social demand.
FREMONT, CA: Renewable energy purchases have increased significantly in recent years. In the United States, nearly 100 corporate renewable energy sourcing agreements with a combined capacity of more than 10 GW were inked in 2020, up from just 1.5 GW in 2015. 3 distinct trends describe the maturation route of the renewable energy purchase market.
Additional value
This means that corporate purchasers support the construction of new renewable energy facilities. A business can contribute to developing a planned wind farm (but not yet budgeted). By agreeing to a CPPA that ensures a revenue stream, the corporate buyer provides sufficient certainty to the developer to proceed with the wind farm's construction. Another criterion for labeling a project as supplementary is not subsidized. As civic society continues to exert pressure on businesses to expand their green objectives, the trend toward renewable energy from alternative sources is set to continue.
Continual supply
Over 50 businesses have already committed to using 100 percent renewable energy, and hundreds more have pledged to do so. In practice, this requires balancing a company's energy use with renewable energy generation yearly. However, as expectations expand, some are now attempting to match real-time electricity demand with an equivalent amount of renewable energy production (i.e., within the same hour or less).
Baseload renewable energy (e.g., sustainable biomass or geothermal) or storage is required to make this feasible over an extended time horizon. However, it should be underlined that 24/7 is a guiding star in the modern day. Even the most progressive organizations today do not expect to match their energy consumption 100 percent of the time. Rather than that, they are looking for ways to increase the share of green energy that is checked and finally attain 100 percent renewable energy 24 hours a day.
Technological advancements in regulatory frameworks
Administrative impediments continue to stymie growth. On the supply side, slow and unreliable permission processes impede the deployment of wind and solar in the places where corporate demand is greatest. Demand-side impediments also exist.
Eliminating regulatory hurdles will enable renewable energy to reach its full potential, resulting in considerable economic benefits such as increased corporate investment and cheaper energy costs from competitive renewables. It appears as though an increasing number of regulators recognize these benefits.
While significant progress has been made on the regulatory front, much more work remains to be done to realize the enormous potential of corporate renewables sourcing fully. Additionally, corporate green ambitions for additionality and 24/7 operation will need to be increased. However, history demonstrates that if corporations are bold in their approach to challenges and collaborate with governments, they can overcome any obstacle—including the defining challenge of time.
