Clean Power Purchasing Industry News


large scale through offsite PPAs, making them rarities for the region. Demand still far outstrips supply


in the rest of APAC, although recent changes in several markets suggests a major spike in activity is on the horizon. Offsite corporate PPA mechanisms are now available in nine provinces in China, and the imminent passing of a renewable portfolio standard will give over 30,000 large commercial and industrial companies renewable electricity targets. In Japan, the country’s third non-fossil certificate auction saw corporations purchase 21TWh, tripling the combined activity in the first two auctions. Thirteen companies in Japan have also established 100 renewable electricity targets, more than the rest of APAC combined. The healthiest signal of continued


growth in the global corporate procurement space is the growing alliance of companies establishing clean energy and sustainability commitments. One such campaign, known as the RE100 – consisting of nearly 160 signatories at the


Source: BloombergNEF, Bloomberg Terminal, The Climate Group, company sustainability reports. Note: Charts are for RE100 members that have disclosed electricity demand. Certificate purchases includes non-U.S. green tariff programs, and are assumed to step down 10% each year. Onsite generation and contracted wind and solar purchases are assumed to remain flat through 2030. Regional breakdown of shortfall estimated based on each company’s share of revenue by region.


Figure 2: Projected renewables shortfall for RE100 companies


end of 2018 that have established 100% renewable electricity targets – has companies domiciled in 23 different markets. Cumulatively, these companies consumed an estimated 189TWh of electricity in 2017, equivalent to Egypt’s electricity consumption. BNEF estimates these companies


will need to purchase an additional 190TWh of clean electricity in 2030 to meet their RE100 targets. Should


this shortfall be met with offsite solar and wind PPAs, it would catalyse an estimated 102GW of new solar and wind build globally, greater than the size of the U.K.’s power generation fleet in 2017 (see Figure 2 above). Rooze said: “For companies that


think seriously about sustainable growth, establishing clean energy and decarbonization targets lines up naturally with overall corporate strategies. At the same time, these


initiatives have created an entire new universe of opportunity for utilities, clean energy developers and investors.”


BNEF updates its data on


corporate procurement each month and publishes a market outlook on corporate energy strategy bi-annually. Contact: Veronika Henze BloombergNEF +1-646-324-1596 vhenze@bloomberg.net


Spring 2019 Forest Bioenergy Review 13


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