renewabled procurement explained
Corporate sourcing of renewables is a fast-growing trend in Europe, driven by cost reductions and increasing demands for sustainability. Companies find renewable energy an attractive investment.
The market for corporate sourcing in Europe, including power purchase agreements (PPAs) and other methods, is substantial. Globally, corporate sourcing has added over 100GW to the grid through PPAs or onsite installations, making it a vital route to market for renewables.
A corporate PPA is a long-term contract between a company and a renewable energy provider to buy a fixed amount of electricity at an agreed price. Typically lasting 5-20 years, PPAs have seen steady growth since 2014. Wind and solar are increasingly used together to meet energy needs efficiently.
Companies seek new, reliable energy sources and aim to limit global warming by reducing Scope 2 emissions.
Many corporations, through initiatives like RE100, commit to 100% renewable energy, seeing it as a strategic way to cut costs and emissions.
RE-Source works to accelerate corporate renewable energy procurement through growing the pool of corporate buyers in Europe, via tools like, but not limited to, PPAs, onsite generation, and renewable energy certificates.
This mission intends to support corporate decarbonisation, in support of Europe’s renewable energy and net neutrality targets. Read our missions statement here.
Establish a Global Renewable Electricity Capacity Target for 2030: We call on world leaders at COP28 to set a global target to triple renewable electricity capacity by 2030. This target would align countries under a shared commitment to fast-track renewable energy deployment. A unified target will increase policy coherence, encourage investment, and enhance cross-border cooperation, creating a clear path towards achieving the Paris Agreement’s objective of limiting global warming to 1.5 degrees.
Remove Regulatory Barriers to Corporate Clean Energy Procurement: To enable corporate buyers to contribute fully to renewable energy targets, governments should remove remaining regulatory barriers that hinder direct clean energy purchasing in various markets. By establishing regulatory frameworks that allow corporate procurement of renewables, countries can attract private investment, accelerate renewable energy growth, and support a faster energy transition worldwide.
Promote Regulatory Best Practices for Renewable Energy Markets: We urge governments to implement regulatory best practices that facilitate corporate investment in renewable energy, especially in markets where such procurement is challenging. Countries that adopt transparent, stable, and supportive regulatory frameworks can drive substantial clean energy investment, creating new economic opportunities and expediting the shift to a decarbonized global energy system.
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