The Renewable Energy Revolution: Fueled by Corporate Action
Imagine a world where the sun’s rays power our cities, the wind turbines spin relentlessly to keep the lights on, and the future of our planet is brighter than ever. That’s the world we’re steadily moving towards, and it’s all thanks to the unwavering commitment of corporate and institutional leaders who are leading the charge in the renewable energy revolution.
As the acting CEO of the Clean Energy Buyers Alliance, I’ve had a front-row seat to witness this remarkable transformation. It’s been nothing short of inspiring to see how the collective power of corporate energy customers has been driving the clean energy transition and reducing carbon emissions across the US power system.
In 2022 alone, voluntary renewable energy procurement deals by these corporate and institutional customers were equivalent to a staggering 70% of the carbon-free energy capacity added to the grid. That’s a mind-blowing statistic that demonstrates the outsized impact of their actions.
The Corporate Renewable Energy Procurement Powerhouse
The Clean Energy Buyers Association, with its more than 400 members, including one-fifth of the Fortune 500, has truly become a renewable energy procurement powerhouse. These energy customers and partners have a shared aspiration to achieve a 90% carbon-free US electricity system by 2030, and they’re putting their money where their mouth is.
Since 2014, these energy customers have voluntarily procured an astounding 71 GW of clean energy, which is equivalent to a whopping 42% of all wind and solar capacity added to the US grid. That’s a remarkable achievement, and it’s all thanks to their large-scale buying power and unwavering commitment to sustainability.
But it’s not just about the numbers; it’s about the real, tangible impact these corporate actions are having on the power system. As the Center on Global Energy Policy at Columbia University noted in a 2021 report, corporate renewable energy procurement has had an “encouraging impact” on US power sector decarbonization, with a material and increasing share of wind and solar deployments now driven by the procurement preferences of these corporate customers.
The Crucial Role of Voluntary Procurement
In the absence of national emissions reduction mandates, these voluntary corporate and institutional procurement deals have become a critical catalyst for the clean energy transition. As the Utility Dive article pointed out, “customer procurement of renewable electricity has catalyzed the marketplace toward a cleaner grid.”
And the best part? The potential benefits of the recently passed Inflation Reduction Act (IRA) are heavily dependent on this continued customer demand. The IRA has already created over 170,000 new clean energy jobs, and Goldman Sachs Research estimates that its impact could encourage a staggering $11 trillion of total clean energy infrastructure investments by 2050, with a cumulative investment opportunity of $29 trillion across sectors by 2032.
Navigating the Complexity of Procurement
But as with any complex endeavor, corporate renewable energy procurement doesn’t come without its challenges. The landscape is constantly evolving, and energy customers are navigating a myriad of options, from attribute-only procurement and power purchase agreements to virtual power purchase agreements and onsite deployment of renewables.
At the Clean Energy Buyers Alliance, we recognize that there is no one-size-fits-all solution. We believe that multiple strategic paths are needed to allow organizations to craft procurement strategies that are unique to their resources and individual circumstances, including geographic constraints.
And as the academic debate on the most effective strategies continues, we’re actively engaged in making recommendations to improve emissions accounting and marketing associated with corporate and institutional energy procurement. We’ve submitted recommendations to the Greenhouse Gas Protocol and the FTC Green Guides, advocating for improvements that will provide energy customers with a transparent and credible way to avoid and reduce carbon emissions and receive acknowledgment for their efforts.
The Power of Collaboration and Partnership
At the end of the day, we recognize that achieving the rapid decarbonization needed to avert the worst effects of climate change will require a collaborative effort. That’s why we’re constantly engaging with our partners and members to find innovative solutions and drive progress.
By aligning these key stakeholders and providing strategic advice based on real-world demands, the ACEC aims to create a more conducive policy and regulatory environment for corporate renewable energy procurement in the region. After all, Asia is a critical battleground for the transition from coal power to clean energy, and the collaboration between buyers, sellers, and policymakers will be crucial in driving this transformation.
The Future is Bright (and Renewable)
As I look towards the future, I’m filled with a sense of optimism and excitement. The renewable energy revolution is in full swing, and corporate and institutional leaders are leading the charge. With their large-scale buying power and unwavering commitment to sustainability, they are driving the addition of clean energy to the grid at an unprecedented pace.
And the benefits go far beyond just reducing carbon emissions. The Inflation Reduction Act has already created over 170,000 new clean energy jobs, and Goldman Sachs Research estimates that its impact could encourage $11 trillion of total clean energy infrastructure investments by 2050. That’s a staggering economic opportunity that will transform communities and create a more sustainable future for all.
So, as you navigate the world of solar energy solutions and explore the possibilities of renewable energy, take heart in the knowledge that corporate and institutional leaders are leading the way. Together, we can harness the power of the sun, the wind, and the collective will of businesses and organizations to create a brighter, more sustainable tomorrow.
