Accelerated Procurement of Renewables in the US Business Scene · PDF file...

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  • Accelerated Procurement of Renewables in the US Business Scene

    REVision 2018 Lily Donge | March 9, 2018 | Tokyo, Japan

  • Corporate Renewable Deals 2013 – 2018 YTD

    Copyright 2018 by Rocky Mountain Institute For more information, please visit http://www.businessrenewables.org/ or contact [email protected]

    Publicly announced contracted capacity of corporate Power Purchase Agreements, Green Power Purchases, Green Tariffs, and Outright Project Ownership in the US and Mexico, 2013 – 2018 (YTD). Excludes on-site generation (e.g., rooftop solar PV) and deals with operating plants. Last updated: February 13, 2018.

    Apple

    Apple

    US Delphi Automotive Volkswagen

    Google

    Microsoft

    Becton Dickinson

    Facebook

    IKEA

    Google

    Mars

    Apple

    Microsoft

    Walmart

    Yahoo IKEA

    Aerojet Rocketdyne

    Apple

    Google

    Procter & Gamble

    General Motors

    Kaiser Permanente

    Kaiser Permanente

    Dow Chemical

    Walmart

    Amazon Amazon

    Cisco

    Facebook

    Amazon

    Switch HPE

    Equinix Procter & Gamble

    Equinix Equinix

    Owens Corning Owens Corning

    Amazon

    Google

    Apple

    Switch

    Bloomberg

    Google

    Google

    Google General Motors Corning

    Philips Salesforce

    Salesforce

    Lockheed Martin

    Steelcase

    3M

    Google

    Iron Mountain

    Walmart Digital Realty

    Amazon

    Johnson & Johnson

    Apple

    Iron Mountain

    General Motors

    Amazon

    Microsoft Amazon Amazon

    Avery Dennison

    PayPal

    Apple

    Facebook

    Solvay

    Anheuser- Busch InBev

    DeAcero

    Partners HealthCare

    T-Mobile

    Apple

    Apple

    Akamai Technologies

    General Mills Goldman Sachs

    Target Cummins T-Mobile JPMorgan

    Anheuser-Busch InBev

    Kimberly Clark Kimberly Clark

    General Motors General Motors

    Facebook

    DSM Google

    Google Google

    Digital Realty

    Digital Realty

    Nike

    Brown- Forman

    AT&T

    AT&T

    Nestle

    0.77

    1.20

    3.26

    1.61

    3.11

    0.0

    0.5

    1.0

    1.5

    2.0

    2.5

    3.0

    2013 2014 2015 2016 2017 2018

    Capacity (GW)

    .69

    YTD

    http://www.businessrenewables.org/ mailto:[email protected]

  • • 501(c)(3) Non-Profit

    • Energy market transitions since 1982

    • Focused on the cost-effective shift to efficiency and renewables

    Rocky Mountain Institute (RMI)

  • RMI in the News – Sampling from Past 12 months

    Rocky Mountain Institute

    Corporate Renewables Procurement

  • RMI in the News – Sampling from Past 12 months

    Microgrids and Resiliency

    Rocky Mountain Institute

    Corporate Renewables Procurement

  • RMI in the News – Sampling from Past 12 months

    Transactional Systems Microgrids and Resiliency

    Rocky Mountain Institute

    Corporate Renewables Procurement

  • RMI in the News – Sampling from Past 12 months

    Disruptive Energy Solutions

    Transactional Systems Microgrids and Resiliency

    Rocky Mountain Institute

    Corporate Renewables Procurement

  • RMI in the News – Sampling from Past Year

    Disruptive Energy Solutions Advanced Transportation

    Transactional Systems Microgrids and Resiliency

    Rocky Mountain Institute

    Corporate Renewables Procurement

  • Business Renewables Center (BRC)

  • /RockyMtnInst #theBRC Copyright 2018 by Rocky Mountain Institute

    For more information, please visit http://www.businessrenewables.org/ or contact [email protected]

    10

    A movement towards RE100

    http://www.businessrenewables.org/ mailto:[email protected]

  • /RockyMtnInst #theBRC Copyright 2018 by Rocky Mountain Institute

    For more information, please visit http://www.businessrenewables.org/ or contact [email protected]

    [email protected]

    Collaboration with first movers

    http://www.businessrenewables.org/ mailto:[email protected]

  • /RockyMtnInst #theBRC Copyright 2018 by Rocky Mountain Institute

    For more information, please visit http://www.businessrenewables.org/ or contact [email protected]

    Why buy renewable energy?

    12

    Sources: “Levelized Cost of Energy Analysis – version 11.0”, Lazard, November 2, 2017, https://www.lazard.com/media/450337/lazard-levelized-cost-of-energy-version-110.pdf “Levelized Cost of Energy Analysis – version 10.0“, Lazard, December 15, 2016, https://www.lazard.com/media/438038/levelized-cost-of-energy-v100.pdf

    LCOEs attainable with existing federal

    subsidies. $0

    $50

    $100

    $150

    $200

    $250

    $300

    Energy Efficiency

    Onshore Wind Utility Scale Solar

    Combined Cycle Gas

    Coal Nuclear C&I Rooftop Solar

    Diesel Reciprocating

    Engine

    Unsubsidized Levelized Cost of Electricity $ / MWh

    http://www.businessrenewables.org/ mailto:[email protected] https://www.lazard.com/media/450337/lazard-levelized-cost-of-energy-version-110.pdf https://www.lazard.com/media/438038/levelized-cost-of-energy-v100.pdf

  • /RockyMtnInst #theBRC Copyright 2018 by Rocky Mountain Institute

    For more information, please visit http://www.businessrenewables.org/ or contact [email protected]

    Why buy renewable energy?

    13

    >10x growth in BRC membership in ~3 years

    9 23

    44 46 52

    8

    15

    23 37

    44

    14

    31

    57

    83

    113

    May 11, 2015

    31

    Nov 2014

    16

    Nov 16, 2016

    166

    May 19, 2016

    124

    Nov 17, 2015

    69

    Developer

    Service Provider

    Corporation

    (“Buyer”)

    June 20, 201711/2014 (Launch)

    5/2015 11/2015 5/2016 11/2016 1/2018

    http://www.businessrenewables.org/ mailto:[email protected]

  • /RockyMtnInst #theBRC Copyright 2018 by Rocky Mountain Institute

    For more information, please visit http://www.businessrenewables.org/ or contact [email protected]

    Why buy off-site renewable energy?

    14

    Sampling of Industrial and Manufacturing BRC Members Companies

    FOOD, BEVERAGE, & PACKAGING CHEMICAL & PHARMACEUTICAL

    AUTOMOTIVE & AEROSPACE ELECTRICAL & DIVERSIFIED

    BUILDING MATERIALS & FURNITURE

    http://www.businessrenewables.org/ mailto:[email protected]

  • /RockyMtnInst #theBRC Copyright 2018 by Rocky Mountain Institute

    For more information, please visit http://www.businessrenewables.org/ or contact [email protected]

    Why buy off-site renewable energy?

    15

    147 145

    108

    94

    51 50 44

    39 30

    23

    0

    20

    40

    60

    80

    100

    120

    140

    160

    Target Walmart Prologis Apple Costco Kohl's IKEA Macy's General Growth

    Properties

    Bed Bath and Beyond

    On-site Solar Installations

    MW

    Source: SEIA

    http://www.businessrenewables.org/ mailto:[email protected]

  • /RockyMtnInst #theBRC Copyright 2018 by Rocky Mountain Institute

    For more information, please visit http://www.businessrenewables.org/ or contact [email protected]

    Why buy off-site renewable energy?

    16

    “Mars’ long term goal is to eliminate all GHG emissions from our operations and reduce GHG value chain emissions by 2/3.”

    http://www.businessrenewables.org/ mailto:[email protected]

  • /RockyMtnInst #theBRC Copyright 2018 by Rocky Mountain Institute

    For more information, please visit http://www.businessrenewables.org/ or contact [email protected]

    Why buy off-site renewable energy?

    17

    1 off-site project 100% US Operations

    “Mars’ long term goal is to eliminate all GHG emissions from our operations and reduce GHG value chain emissions by 2/3.”

    http://www.businessrenewables.org/ mailto:[email protected]

  • PPAs are limited to deregulated markets

    Source: FERC

  • /RockyMtnInst #theBRC Copyright 2018 by Rocky Mountain Institute

    For more information, please visit http://www.businessrenewables.org/ or contact [email protected]

    What issues do buyers consider when evaluating projects?

    19

    With a partner, come up with

    • a potential priority, and • a potential risk

    that companies might consider when selecting a project.

    http://www.businessrenewables.org/ mailto:[email protected]

  • /RockyMtnInst #theBRC Copyright 2018 by Rocky Mountain Institute

    For more information, please visit http://www.businessrenewables.org/ or contact [email protected]

    What issues do buyers consider when evaluating projects?

    20

    Buyer priorities

    and concerns

    Wider social good from renewables development

    Meeting sustainability goals

    Additionality/marketing claims

    Volatility of downside risk

    NPV of worst case scenario

    Carbon reduction

    Locating generation close to load

    Energy spend hedge value

    Clear exit options and