Sustainability

Seeking: Leading Companies to Drive Renewable Energy Revolution

By  Marty Spitzer, Director U.S. Climate and Renewable Energy Policy, WWF July 17, 2014

solar 3
Editor's Note: Earlier this month, Walmart joined Bloomberg, Facebook, General Motors, Hewlett-Packard, Intel, Johnson & Johnson, Mars, Novelis, Procter and Gamble, REI, and Sprint in signing the Renewable Energy Buyer’s Principles. The goal of these Principles is to increase availability of cost-competitive renewable energy to run their businesses and better communicate their purchasing needs and expectations to the marketplace. 

What can rotary dial telephones, cathode ray tube (CRT) televisions and door to door milk delivery teach us about the renewable energy revolution? They show us how once commonplace products and services have and will always be replaced by newer ones. It’s not farfetched to say 2014 is to renewable energy what 1955 was to the CRT TV – the golden age of renewable energy is just now upon us.

Many of America’s largest companies are also convinced that a clean energy future is what they want, and they’ve set significant goals to get there. In fact, 43% of Fortune 500 companies have set renewable energy and efficiency targets, and – better still – 60% of the Fortune 100 have set targets.

These corporations are demonstrating real progress toward their goals. For example, Mars, Inc., a food company known for its chocolate products, recently announced that it will build a 200-megawatt (MW) wind farm in Lamesa, TX, which, according to Mars, is the largest long-term commitment to renewable energy made by any food manufacturing business in the U.S. We read about other large deals nearly every day.

In the process of switching to renewable energy, companies have gained a great deal of experience. Unfortunately, this transition hasn’t been easy. Utilities have been slow to respond to their major customers’ needs. When the companies bypass their utilities to purchase renewable energy elsewhere, they are having successes, but face complex deals and financing arrangements making it hard to buy renewables at the scale they need.

What do the companies want? The companies want utilities, utility regulators, and providers of renewable energy to understand that they have large demand for clean renewable energy. The system that exists now makes it difficult to meet their goals. But companies are willing, and in many cases would prefer to work with all these key players to make renewable energy available more quickly.

Wind Energy stock photo

In every other aspect of their business, companies are used to a competitive market for the commodities they buy. The best quality goods at the most favorable terms win the contract. However, where energy is concerned -- and particularly renewable energy -- companies have far fewer choices. In many markets, companies have no choice at all. In others, choices are extremely limited or require a price premium over fossil-fuel produced energy, in quantities too small to meet the company needs, and subject to ongoing price volatility. All in all, this hinders companies’ ability to meet their renewable energy targets and discourages the setting of more ambitious targets. We should be rewarding these corporate leaders trying to do the right thing with their energy use, not slowing them down.

On the upside, there is a huge opportunity available to utilities and renewable energy providers who can bring companies what they need. The companies that have signed onto the Corporate Renewable Energy Buyers’ Principles alone account for 8.4 million megawatt hours of demand per year, enough electricity to power nearly 800,000 homes each of the next few years. Many of these companies would prefer to meet this need by purchasing renewable electricity through their local utility companies, but if utility companies are unable to provide it, they are -- and will -- continue to go elsewhere.

A more robust, open renewable energy market with innovative tariffs would create the competition needed to encourage other companies to set and meet aggressive renewable targets, something that would literally benefit the entire planet. If that sounds like a good idea to you, we welcome more companies to sign onto the Corporate Renewable Energy Buyers’ Principles.

Intrigued? Shoot me an email and we’ll talk about meeting your company’s renewable energy targets. For utility regulators, it’s time to find out what your customers want and find a way to meet that need. If you don’t, someone else will.

Read more from Marty Spitzer

Be the first to comment on this article

Related Posts

Sustainable Farming with True Affordability in Mind

By Tim Richter, Member, The Triple Bottom Line

Our Food Pledge to YOU

By Doug McMillon, President & CEO, Walmart

At the LEGO Group, Working to Build a Better Tomorrow

By Jørgen Vig Knudstorp, President and CEO of the LEGO Group

Top 10 Eco-Friendly Features of Walmart Stores

By Don Moseley, PE, Senior Manager of Sustainability Facilities at Wal-Mart Stores, Inc.

What Walmart Needs to Go 100% Renewable

By Joshua Ryor of WRI & Bryn Baker of WWF

@WalmartGreen

We thought this @Dial video was fun. We bet you'll be singing this one in the shower from now on: http://t.co/Z3K0PiEA4N

By Walmart Green

11:11am December 06, 2014

Hop in, get wet, lather up, rinse off, finish. Shower responsibly, friends: http://t.co/Lv1g5juyg7 via @Dial

By Walmart Green

12:19pm December 05, 2014

@gummydaddy Thank you for your interest. You can learn more and apply to be a supplier here: http://t.co/gomkk5ujXl

By Walmart Green

12:01pm December 04, 2014