Renewable Energy Procurement: Strategies for 100% Clean Power
Switching to renewables is pivotal for Scope 2 goals. Corporate PPAs reached35 GWin 2023, a 20% uptick year-over-year¹. This article compares on-site, off-site, and REC strategies, and offers practical steps to achieve 100% renewable electricity.
Procurement Pathways
On-Site Generation:Solar or wind installations reduce grid reliance; a logistics firm covered 60% of demand with 20 MW of solar².
Off-Site PPAs:Virtual contracts hedge prices and support new projects.
RECs:Interim mechanism; ensure geographical matching for additionality.
Contract Key TermsPPA tenors (10–15 yrs), price collars, and generation guarantees balance risk. A tech company’s collar PPA secured 5–10% below market rates³.
Collaborative BuyingConsortia like CEBA aggregate demand, yielding better pricing and access to larger projects⁴.
Action Plan
Conduct feasibility studies for on-site.
Negotiate PPA terms with advisors.
Retire RECs regionally until PPAs are in place.
Key TakeawaysA blend of on-site, PPAs, and RECs, reinforced by collaborative procurement, unlocks cost-effective pathways to 100% renewable electricity.
References:
BloombergNEF. (2023).Global Corporate PPA Market Outlook. https://about.bnef.com/power-purchase-agreements
Logistics Co. Renewable Energy Case Study (2022).
Tech Firm PPA Guide (2023).
Clean Energy Buyers Association. (2023).Consortium Procurement Report. https://cebuyers.org