(3BL Media/Justmeans) - Most businesses will tell you that their reason-to-be is to meet their customersâ needs. So when a group of major corporations that use a great deal of energy get together to sign a pact asking their utilities to provide more renewable energy, one would expect utilities to take notice.
That is the rationale behind the Renewable Energy Buyersâ Principles, which focuses on buyersâ unmet demand for more renewable energy. The principles were jointly created by the World Wildlife Fund (WWF) and the World Resource Institute (WRI) to help companies navigate theâ increasing complexity and transaction costsâ associated with large scale purchases of renewable power.
The twelve companies that signed the agreement are Bloomberg, Facebook, General Motors, Hewlett-Packard, Intel, Johnson & Johnson, Mars, Novelis, Procter and Gamble, REI, Sprint, and Walmart. All of these companies are driving towards carbon neutral operation.
It might be the cart leading the horse, but as Suzanne Apple of WWF says, âThese companies are leading the market in creating demand for renewable energy. The Buyersâ Principles provide sound guidance to the market providers. Some of Americaâs largest companies are embracing renewable energy, and their collective demand requires the market to keep pace.â
The agreement includes a combined renewable energy target of 8.4 million megawatt hours (MWh) per year through 2020. The Buyersâ Principles contain six criteria that should significantly help companies meet these ambitious purchasing goals. These are:
- Greater choice in procurement options,
- More access to cost competitive options,
- Longer- and variable-term contracts,
- Access to new projects that reduce emissions beyond business as usual,
- Streamlined third-party financing,
- Increased purchasing options with utilities.