As part of your organisation's climate journey, you'll measure your emissions footprint, set reduction targets, and develop a list of interventions to reach those targets. Renewable electricity (RE) will surely be a part of this roadmap.
But, you may want to get started on RE sooner, in parallel to or even ahead of this process. Why is that? RE isn't just a sustainability strategy – it's a good business opportunity. Investing in renewable electricity today can put your organisation in a stronger position to confront tomorrow's challenges, climate-related and beyond. This post explores five reasons not to wait on RE.
1. You're already paying for electricity
It's always harder to find budget for something new. But (we presume) buying electricity isn't new to your organisation. Wherever your organisation operates, you're (likely) buying megawatt-hours (MWh) from the local utility. In fact, you may even have an energy team whose primary purpose is to manage and optimise your energy procurement. Rather than procure that electricity from fossil fuel sources, why not procure renewable electricity instead and reduce your scope 2 emissions?
2. You already have the necessary data
Reducing emissions in scopes 1 and 3 requires careful emissions footprinting. However, this is not the case for scope 2. To develop an RE roadmap, you need to know how much electricity (measured in MWh) you consume and in which markets. In our experience, most organisations already have this data available simply because it's smart from a business perspective to know how much electricity you're buying and where you're buying it. In other words, there's no extra work required on your part to get started with renewable electricity.
3. You can save money
Our suggestion to procure renewable electricity might have you asking: At what incremental cost? True, RE will support your organisation's climate reporting, but how are you going to make a case internally to start, or accelerate, the procurement of renewable electricity if that renewable electricity costs more than grid electricity? The good news is, the opposite is probably true. Renewable electricity, in many cases, costs less than fossil fuel electricity. You can have your cake and eat it too, and thank the remarkable decrease in cost of renewable technologies, particularly solar, over the past decade (see graph below).