Commercial, Industrial, Sourcing Renewables - May 28, 2018
Corporate sourcing of RE hit 465 TWh hours in 2017
Companies in 75 countries combined to source 465 terawatt hours (TWh) of renewable energy in 2017, an amount close to the overall electricity demand of France.
A new report from the International Renewable Energy Agency (IRENA) suggested that with the continued decline in the costs of renewables, corporate demand will continue to increase as companies seek to reduce electricity bills, hedge against future price spikes and address sustainability concerns.
The report, Corporate Sourcing of Renewables: Market and Industry Trends, an assessment of trends and policies in corporate sourcing of renewables, shows that renewable energy sourcing by private sector companies, made possible with the right policy framework in place, can be a key factor in the world’s pursuit of a sustainable energy transformation in line with the objectives set out in the Paris Agreement.
"Renewable energy sourcing has become a mainstream pillar of business strategy in recent years," said IRENA Director-General Adnan Z. Amin. "While environmental concerns initiated this growing trend, the strengthening business case and price stability offered by renewables can deliver a competitive advantage to corporations, and support sustainable growth."
Among the more than 2,400 large companies included in the study, half are voluntarily and actively procuring or investing in self-generation of renewable electricity for their operations, with more than 200 currently sourcing at least half of their power from renewables. Electricity self-generation is the most common sourcing model, followed by unbundled energy attribute certificates (EACs) and power purchase agreements (PPAs).
By volume, the majority of renewable electricity was consumed in the materials sector while the highest shares of renewable electricity consumption are found in the financial (24%) and information technology (12%). Countries in Europe and North America continue to account for the bulk of corporate sourcing. Of all companies included in the study, only 17% have a renewable electricity target in place.
Read These Related Articles:
- Record-breaking 260+ GW of Renewable Energy Added Globally in 2020
- Renewable energy = one-third of global power capacity
- Infographic: Corporate sourcing of renewables—numbers behind the growth
- IRENA: Renewable technologies competitive by 2020
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