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Posted 4 months ago | 3 minute read
RE100 calls for clean energy purchasing support for business
Limited availability of renewables, lack of opportunities for green Power Purchase Agreements (PPAs) and prohibitive costs are hampering businesses clean power ambitions, RE100 has warned.
In its latest disclosure report, covering 2021, the organisation noted that corporate appetite for power purchase agreements is growing incrementally and its members are now sourcing more of their renewable electricity through PPAs than ever before. 28% of reported procurement of renewable electricity is done through PPAs, up from 26% in the 2020 report.
According to the document, RE100 members are now sourcing nearly 45% of their electricity needs from renewable sources, up from 41% in 2020 and representing 152TWh of renewable electricity. 61 members, meanwhile, reported they are sourcing all their electricity from renewable sources.
But globally, more than half of businesses said they faced “significant challenges” in sourcing renewables power. Limited availability, lack of procurement opportunities, and prohibitive costs were cited as the top three issues preventing them from achieving their clean power ambitions. Asian markets were identified as regions where clean power procurement was proving most difficult, with members highlighting barriers to securing renewables capacity in South Korea, Japan and China. Traditionally fossil fuel-reliant countries, including Australia, Russia, and Saudi Arabia, were also highlighted as challenging.
The report also raised concerns that regulatory barriers are hampering the business world’s transition to net zero and urged policy-makers and businesses to collaborate to tackle the barriers to renewables procurement, arguing that its rapidly growing membership was evidence of strong private sector appetite for clean power.
GridBeyond Asset Development Director Chris Smith commented:
GridBeyond Business Unit Manager – Delivering Net Zero, Jeff Power added:
By aggregating renewables with batteries and flexible load, at GridBeyond we create a high performing portfolio of assets with the ability to earn additional revenues through traded markets ensuring renewables generators maximise revenue for every MW generated.
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