Fri. Jan 24th, 2020

Demand from first-time, repeat consumers powers new period of large-scale renewables progress

Giant-scale power consumers are driving the power panorama shift by collectively voicing their demand for accessible clear power choices to lower their carbon impacts. In 2018 alone, the group accounted for six.three gigawatts in introduced renewable power offers — an quantity equal to over 60 % of all new renewables technology added in the US final yr. 

Nevertheless, the U.S. industrial and industrial sector remains to be essentially the most energy-intensive, accounting for about 50 % of all energy consumption and 34 % of all greenhouse gasoline (GHG) emissions.

So what’s subsequent for this group in relation to advance its clear power and GHG emissions discount mandates?

This yr’s Renewable Power Patrons Alliance (REBA) Fall Summit convened many of those actors, offering a collaborative platform to drive progress, sort out market limitations as a group and coalesce across the dedication to unlock clear power pathways for all power consumers. REBA is a group centered on empowering large-scale power consumers to attain the objective of catalyzing 60 GW of unpolluted power and to extend the variety of organizations transacting from 5,000 in the present day to 50,000 sooner or later.

The journey up to now

The demand for clear power has elevated demonstrably from a decade in the past, when a handful of pioneers began the journey of navigating advanced procurement mechanisms, to in the present day the place nearly 65 % of recent clear power capability is pushed by large-scale power consumers.

We most frequently rejoice the top of the client journey, the precise growth and implementation of tasks akin to these introduced by REBA founding members Iron Mountain and Walmart introduced through the gathering. However their particular person tales display an necessary lesson: Each group begins in the identical place. Reflecting on what corporations akin to these have realized additionally helps showcase how the market has grown.

Earlier than procurement of unpolluted power even can start, large-scale power consumers tackle accounting and mapping of carbon footprints and figuring out the place the alternatives lie to cut back emissions by way of enhancements in power effectivity and diversification of power sources. This serves as a baseline to tell sustainability plans. The general public dedication element can embody carbon discount targets, pledges to acquire 100 % clear power and reporting buildings that drive motion.

At this stage within the large-scale power purchaser’s journey, we’re at a crossroads. Many corporations are pursuing established targets; nonetheless, they proceed to face intractable market limitations that hinder scaling entry to wash power. 

The collective voice and actions of large-scale power consumers are each highly effective instruments that transfer markets.

REBA is actively working to deal with challenges by making certain consumers are geared up with the required foundational data and instruments, akin to case research, immersive deep-dive boot camps and member-only summits that facilitate peer data sharing, showcase success tales and uncover rising market insights.

Progress regardless of limitations

Giant-scale power customers are motivated by quite a few elements to pursue clear power, together with the will to handle volatility in power prices. and cut back the local weather influence of their power consumption. Most even have a robust perception that a zero-carbon power future is in the most effective curiosity of their communities, stakeholders and shareholders.

In line with the REBA Deal Tracker, this yr already has eclipsed 2018 in introduced renewable power offers with over 7 GW of tasks in the US alone. There was a surge in new large-scale power consumers with first-time consumers accounting for 50 % of the offers yr thus far, representing a various swath of sizes, sectors and procurement methodologies. 

You could surprise how this has been attainable given the earlier mentions of intractable limitations. Giant-scale power consumers are leveraging the procurement pathways at present out there to them, akin to conventional and digital energy buy agreements (PPAs). Honda not too long ago introduced a PPA to safe photo voltaic and wind tasks that can generate greater than 1 million megawatt-hours (MWh) of renewable electrical energy yearly.

Distinctive pathways and opening the market to all

In an effort to scale clear power efforts in alignment with general sustainability targets and speed up market progress, large-scale power consumers are additionally exploring distinctive pathways to procurement and easy methods to standardize methodologies to make them accessible to all power consumers. 

Throughout REBA’s Fall Summit, Google launched its Accelerating Reneable Power Buying by way of Auctions (PDF), which detailed actions taken to implement a reverse public sale that resulted within the procurement of 18 new power offers totaling 1.6 GW.

The important thing takeaway for readers is that whereas power auctions are a long-term funding for any firm, they may end up in streamlined, cost-effective and expedited clear power procurement when in comparison with the standard RFP course of. Moreover, reverse auctions have the potential to standardize procurement, execute a big quantity of offers directly and improve market competitors.

The collective voice and actions of large-scale power consumers are each highly effective instruments that transfer markets and past the power trade, legislative, regulatory and coverage stakeholders hear when these market actors transfer into their localities.

Why? As a result of with them comes the ability to create jobs, contribute to financial progress and help group growth.  

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