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Switching your company to renewable energy? Read this first
The renewable energy opportunity for Fortune 1000 companies has never been better. Renewable energy provides direct bottom-line benefits: Reduced energy costs, protection from price volatility, protection from regulatory risk, and positive reputational/brand value. Importantly, the recent extensions of the production tax credit for wind and the investment tax credit for solar have created market certainty, at least for the life of their extensions. For companies considering a renewables effort, this short review of key issues and risks to manage will help accelerate your efforts to harness clean, domestic energy.
From the 30,000 foot level, corporate renewable energy transactions are relatively straightforward: A company makes a long-term commitment to purchase power – and perhaps environmental attributes – from a specific generation facility. The power purchase agreement, or PPA, spells out the terms, conditions and prices for the transaction. Done.
The fact that over the last 12 months companies including Bloomberg, General Motors, Iron Mountain, Microsoft, Procter and Gamble, Yahoo, 3M and others completed more than one gigawatt of new renewable energy transactions underscores the fundamental value of renewable energy and its increasing accessibility to the corporate market.
But there are numerous complexities to address along the way. For you to successfully integrate renewables into your business, issues that include market access, economic and risk analysis, and execution must be managed. What follows are some recommendations and best practices that can help you do just that.
