The Barriers and their Solutions to Green Energy Procurement
Before a green energy procurement strategy can be adopted across a business, it is necessary to gain the support of both internal and external decision-makers.
FREMONT, CA: Previously, the barriers to green energy procurement were a lack of renewable energy on the grid and a high cost of renewables. Where renewable energy is not available through the grid, businesses desiring to employ green energy must generate it on-site through distributed energy resources (DERs). DERs were once significantly more expensive and difficult to install than now. Fortunately, green energy supplies have grown significantly more affordable and easy to integrate across portfolios in recent years.
The following are some obstacles to green energy procurement and their solutions:
A lack of adaptability in terms of technology and financing: For many businesses, it is most advantageous to deploy multiple green energy buying strategies across their portfolios, e.g., on-site solar generation at one facility and a PPA at another. On the other hand, many renewable energy suppliers support specific technology or financing options and actively promote them to their clients. While some operators may be willing to adapt, they lack the necessary resources. This means that companies wishing to utilize numerous green energy solutions must contract with multiple firms, each of whom employs a unique set of technologies and methods. This frequently results in inefficient use of time and resources.
Solution-Utilize energy management software as a solution: A properly configured energy management system will serve as a centralized repository for all of the green energy procurement sources. It can store all relevant generation data to guarantee that performance meets the contract specifications.
External circumstances: Changes in utility rates and temporary government incentives might make or break the green energy procurement initiative. As a result, they must be closely monitored to guarantee that plans are carried out on schedule.
Solution-Employ an external specialist as a solution: It is preferable to outsource such sector-specific information rather than wasting valuable time trying to keep up with changes in the energy industry. A third party familiar with the energy industry's ins and outs and capable of assessing, organizing, and mobilizing a network of providers across portfolios can significantly streamline the green energy procurement process and ensure that renewable energy commitments are met on-time budget.
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