Re-Source 2021 is the annual gathering of European corporate buyers and clean energy suppliers. It is a pivotal event in the world of renewable energy,where existing challenges are tackled and future solutions are born. Although attendees are all interested in renewables, every company's experience of procuring renewables is different. To get the most out of your attendance, here is an overview of some things to keep in mind when developing and executing your energy strategy.
If your company has signed up to RE100, set an SBT, or set a commitment to net-zero/carbon neutrality, you will probably already be looking closely at what's happening in the markets and exploring the different opportunities available through power purchase agreements (PPAs).
Although energy attribute certificates (EACs) are a quick and easy win in terms of achieving renewable energy coverage, they typically involve additional costs and can have limited impact. When you have high energy consumption in geographies that could be better served by other solutions, you should approach your renewable energy target with a nuanced and long term strategy which could achieve cost savings and price risk management alongside sustainability objectives.
A common pitfall, particularly at this early stage, is jumping into implementation without first developing a solid strategy based on your specific business priorities and requirements. For example, a physical PPA in Spain may look like the right thing to do because they're available with strong business cases. However, if you have other European consumption, maybe a pan-European virtual PPA could cover more of your footprint and be a better route to achieving your overall targets. It's important to consider all options in your portfolio with a long term view.
There has been exponential growth in PPAs in the last few years, and even more interest recently with corporate buyers having to manage high European energy prices. It requires long term price risk management to handle this volatility, and PPAs can be a part of that strategy. Markets are also changing and maturing. For example, compared to just a few years ago, Spain and Italy have become very interesting PPA markets. We recommend starting by aligning your procurement team with your sustainability team to help identify and maximize strategic long term opportunities.
Once you have developed your renewable energy strategy, or even more specifically, a PPA strategy, you are ready for your next challenge: implementation. Here you will need to partner with sustainability, sourcing, and implementation experts along with financial and business risk analysts to make sure your long term strategy is operationalised effectively.
The depth of analysis required to build the business case for PPA sourcing is complex, requiring sophisticated scenario modelling based on forward energy curves and other inputs and very few companies have the internal resources, knowledge, and networks to run these processes themselves. It's therefore important to partner up with the right experts with both renewable energy and climate action expertise in order to contract a well sourced PPA that is aligned with your climate commitments, internal business objectives, and governance structure. South Pole partners with Level10 to provide access to over 470 developers and 1300 projects, making it easier for clients who are looking to enter power purchase agreements.
Whether you are just starting or already on your way to corporate leadership, embarking on your renewable energy journey enables your company to harness opportunities that will unlock cost-savings potential and develop a competitive advantage over your peers, while supporting the global energy transition and your commitments to climate change. Working with long term partners and integrating all departments to work together towards sustainability goals ensures that you apply future forward thinking to your strategy and implementation.
South Pole's renewable energy experts and sustainability advisors will be attending RE-Source in person, and we are excited to engage with you on the latest developments to help you on your renewable energy journey.
We encourage you to attend the 'What your CFO Needs to know ' session at Re-Source on Thursday, October 14 from 3-4pm. Together with Level10, Patrick Horka, Head of Renewable Energy Solutions at South Pole, will discuss the eight areas you will need to cover in the meeting with your CFO and how to prepare responses to common questions about PPAs.
We look forward to speaking to you in person at Re-Source 2021! Feel free to schedule a moment here .
We look forward to speaking to you in person!