Corporate Renewable Energy 101

Welcome to the dynamic world of corporate renewable energy! If you're here, you're likely seeking to green up your supply chain and cut those tricky scope 3 emissions. Congratulations on taking this crucial step toward a cleaner, more sustainable future. Let's dive into the array of renewable energy procurement options available, break them down into digestible categories, and underscore the urgency of acting now.

Onsite Renewable Energy Options: Start at the Source

Onsite Solar Power Picture harnessing the power of the sun right from your facility's rooftop or a nearby plot of land. Onsite solar panels are relatively easy to install, provide a visible commitment to sustainability, and can significantly slash your electricity bills. With the right setup, you might even generate surplus energy to sell back to the grid!

Onsite Power Purchase Agreements (PPAs) Onsite PPAs let you host renewable energy equipment, like solar panels or wind turbines, on your property without the upfront costs. A third party installs, owns, and operates the system, and you purchase the electricity generated at a fixed rate. This setup offers the perks of onsite renewable energy minus the capital expenditure, making it an appealing option.

Wind Turbines If you have the space and ideal conditions, installing wind turbines can be an excellent way to generate your own renewable energy. Though a bigger investment upfront compared to solar panels, they can produce substantial power, especially in windy areas.

BiogasGot a lot of organic waste? Turn it into energy with a biogas system. This option not only provides renewable energy but also helps manage waste sustainably. It's a win-win!

Offsite Renewable Energy Options: Think Bigger

Power Purchase Agreements (PPAs) Offsite PPAs are contracts with renewable energy providers where you agree to purchase electricity at a fixed rate for a set period. This option allows you to support renewable energy projects without needing to install any equipment on your property. PPAs are a great way to lock in energy costs and reduce your carbon footprint.

Virtual Power Purchase Agreements (VPPAs) Similar to PPAs, VPPAs involve agreeing to buy renewable energy, but the energy doesn't flow directly to your facility. Instead, it's sold into the grid, and you receive renewable energy credits. VPPAs are flexible and can support projects in various locations, driving renewable energy development where it's most needed.

Renewable Energy Certificates (RECs) and Guarantees of Origin (GOs) RECs (in the US) and GOs (in Europe) certify that the bearer owns one megawatt-hour of electricity generated from a renewable energy resource. Purchasing these certificates supports renewable energy production, even if the power isn't used directly by your facilities.

Environmental Attribute Certificates (EACs): The Green Stamp of Approval

EACs are essential for tracking and verifying renewable energy use. They certify that the electricity you consume is indeed green and help you meet sustainability goals. EACs are crucial for proving your commitment to reducing scope 3 emissions, which include indirect emissions from your supply chain.

Supporting Suppliers: Extend Your Green Reach

Onsite PPAs and CAPEX Investments Corporations can facilitate renewable energy contracts for their suppliers through onsite PPAs or CAPEX investments. In onsite PPAs, a third party installs and operates renewable energy systems on the supplier's property. Alternatively, corporations can provide CAPEX investments to help suppliers cover the upfront costs of installing renewable energy systems. Both methods enable suppliers to harness renewable energy without financial burden, fostering a greener supply chain.

Education and IncentivesIf direct participation in energy deals with suppliers isn't feasible, educating suppliers about renewable energy options and incentivizing them to choose the best solutions is another effective strategy. This could involve hosting workshops, providing resources, or offering financial incentives for adopting renewable energy. By empowering suppliers with knowledge and support, corporations can drive significant sustainability improvements across their entire supply chain. This is something Ren has decades of experience doing around the world!

Why Proximity and Additionality Matter

When sourcing renewable energy, proximity and additionality are key. Proximity ensures that the energy you consume is generated as close to your operations as possible, reducing transmission losses and supporting local renewable energy development. Additionality means that your investment leads to new renewable energy projects that wouldn't have happened otherwise. This is vital for truly impacting global carbon emissions.

Sustainability Ranking: Not All Options Are Created Equal

Some renewable energy options are more sustainable than others. Onsite solar, for example, is highly sustainable because it directly replaces fossil fuels and reduces reliance on the grid. PPAs and VPPAs are also strong choices, as they drive the creation of new renewable projects. RECs and GOs are useful, but they don’t always guarantee that new renewable energy projects are being developed. We recommend starting with onsite solutions first.

Act Now: Time is of the Essence

It's critical to start now to meet your carbon reduction targets. Renewable energy projects can take years to come online, so the sooner you start, the better. Delaying action can lead to higher costs and missed sustainability goals. By beginning your renewable energy journey today, you'll be well on your way to a cleaner, greener future.

Ren: Your Partner in Renewable Energy

At Ren, we're here to help you navigate this journey. The Ren Platform and our team of experts are dedicated to making renewable energy procurement easy and effective. We'll guide you every step of the way, from choosing the right options to implementing and managing your projects. Together, we can power your supply chain with renewable energy and eliminate those scope 3 emissions.

Ready to get started? Reach out to Ren today, and let's make your sustainability goals a reality. We're with you every step of the way!

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