It is a significant undertaking for a company to begin procuring renewable energy, especially via third party PPAs or turnkey purchases. Therefore, it is important to identify your organization’s priorities and constraints for electricity procurement. Identifying these will help you select the right procurement option for your organization and build a compelling case for key decision-makers to approve.
Main Points
- It is vital to understand your own corporation’s motivations, capabilities and risk tolerance, as all companies have different priorities.
- You must be aware of constraints throughout your procurement process regarding internal resources, funding capabilities, policy environment, and more.
First, Read This
Each company has its own renewable energy goals related to cost, its energy security, and sustainability. Choosing a procurement method is a matter of balancing these motivations.
Read Excerpt: Page 21 of Corporate Renewable Power Purchase Agreements: Scaling Up Globally by WBCSD.
Next, Look at This
All companies should consider what their top priorities are to help determine which procurement option is most suitable.
Read Excerpt: Page 13 of Renewable Energy Procurement by the City of Melbourne and Carbon Neutral Cities Alliance.
Finally, Read This
One constraint many companies face is a lack of experience amongst internal team members. Companies embarking upon renewable energy procurement must be prepared to dedicate time and resources to an area in which they may have much to learn.
Read Excerpt: Section 4.1 on page 44 of Corporate Renewable Power Purchase Agreements: Scaling Up Globally by WBCSD.
Suggested Actions & Next Steps
- Investigate: Consult company records and talk to your colleagues: What is your company’s current procurement strategy? What drives your company (ESG commitments, cost savings, etc)? Answers to these questions will help you plan an appropriate procurement strategy.
- Write it down: Identify your company’s competencies in the necessary areas of renewable energy procurement addressed in the third resource of this section.
- Consider: Does your company have a long term decarbonization strategy? If so, evaluate how renewable energy procurement would contribute to that strategy, or, if not, work on drafting the strategy yourself.