What is Renewable Energy Procurement?
Renewable energy procurement is the strategic process of sourcing renewable energy to meet the needs of your organization through a third party energy supplier or distribution company.
Renewable energy procurement is one of the key levers to achieving a Net Zero commitment. Anthesis supports companies and organisations, including Fortune 1000, to develop and execute strategies to set and meet carbon reduction and renewable energy targets.
The pressure to reduce emissions
Companies are making Net Zero commitments to show that they are reducing their emissions in line with what’s required to keep the planet habitable, and are removing the residual emissions that they can not reduce. By making a commitment, companies demonstrate to their investors, business partners, customers, and employees they are preparing their organisations for a carbon constrained world and are doing all they can to mitigate their greenhouse gas (GHG) emissions. Organisations that have robust Net Zero strategies will be more efficient and more resilient and will be prepared for a world where GHG will likely be regulated or priced.
The Competitive Renewables Landscape
Creating a carbon reduction plan involves developing a vision for the right mix of actions that will allow your company to become Net Zero. This involves developing a clear view of the reductions that can be achieved, and an understanding of the role renewable energy can play given your organisation’s specific needs.
Visit our Defining a Net Zero Pathway webpage to learn more about our services helping clients with carbon reduction plans.
Switching to renewably generated electricity has become more economically attractive and availability has grown so that in many locations it’s possible to lock in renewable energy contracts at minimal cost premium or even at a discount. Every unit of renewable energy is recognized as zero or near zero-carbon, so it directly displaces the carbon associated energy generated from fossil fuels. Plus, companies that source renewable energy are recognised as helping the energy system transition to renewable energy through their purchasing.
We help clients understand their renewable options and procure the form of renewable energy that fits their business needs and is best suited to their operations, carbon footprint, and reduction goals. This could involve Power Purchase Agreements (onsite or offsite PPAs), Virtual PPAs, or Renewable Energy Credits.
Learn more about how we help our client purchase renewable energy below.
Anthesis supports clients to assess various onsite renewable energy sourcing and procurement options and to identify the solutions best suited to the organisations’ priorities.
How we do it:
- Identify sites that could host an onsite renewables energy system, such as solar PV on the roof or over a parking area.
- Evaluate the most promising sites based on site characteristics, local energy markets and project economics.
- Identify and compare developers that could build the system using an advanced onsite solar developers’ marketplace.
- Compare capital investment alternatives with power purchase agreement alternatives to ensure financial value to our clients.
- Assist through the request for proposals, vendor selection, negotiation and contracting process.
Through our Partnership with LevelTen, Anthesis has direct access to the world’s largest marketplace of PPAs, the first and only utility-scale wholesale renewable energy marketplace of its kind, enabling us to search, view and compare more than 4,000 offers primarily in the U.S. and European markets. We use the marketplace to find the best deals that meet clients’ needs in terms of value, risk, location, emissions, impact and more.
How we do it:
- Review client’s current footprint and contractual requirements.
- Provide market intelligence and expert guidance on VPPA market conditions.
- Use the LevelTen platform to assess options, scenarios, probabilities and risks using the latest market insights and price index data.
- Work with client to develop a formal strategy for optimal stages of procurement including the setting of procurement targets and the formulation of an Indicative Term Sheet.
- Run dynamic matching or RFP process and manage and respond to bidders.
- Review and evaluate options with client, provide a multi-scenario analysis and develop a short list of options.
- Assist in the negotiation and closing of transaction.
Energy Attribute Certificates (Renewable Energy Certificates)
Anthesis supports clients in their annual renewable energy certification (RECs/REGOs/iRECs etc.) procurement by forecasting the client’s future electricity usage and identifying and communicating with appropriate potential vendors. Anthesis’ global understanding of the renewable energy landscape and external partners that validate our strategies support strategic decision making. Anthesis prescribes instruments recognised by CDP and other ESG reporting and disclosure standards.
How we do it:
- Define specific needs including type of renewable energy certificate, location, price range and any other factors important to the client.
- Identify developers and suppliers to provide renewable certificates.
- Run RFP process and support discussions to help the client get competitively priced proposals.
- Help clients select competitively priced, high quality certificates and negotiate the purchase.
Anthesis supports clients to develop offset strategies to achieve carbon neutrality and Net Zero. We help identify the best suited offset developers and suppliers for offsets to support the clients big picture carbon roadmap.
How we do it:
- Define specific needs including type of carbon offset, location, price range and any other factors important to the client.
- Identify developers and suppliers to provide renewable solution including supporting directly via our CleanCO2 platform.
- Run RFP process and support discussions to help the client get proposals for specific projects at the desired price.
- Help clients select vendors to include in their portfolio of projects and negotiate the purchase.
Our Proven Track Record
With an existing internal price on carbon, the company wanted to develop a strategy for renewable procurement. We developed a tool for them that allowed for scenario modeling, combining different mixes of RECs, “RECs with benefits”, PPAs, and offsets out to 2035.
This company wanted to assess the costs of various carbon reduction commitments. Using their GHG footprint data and future business projections, we developed a comprehensive model that allowed analysis of a number of alternative approaches to help them communicate the likely costs to their CEO and board of directors.
We helped a well-know enterprise software company analyse the projected costs of procuring renewables and offsets to meet both SBTi and Net Zero commitments.
We supported a consumer electronics company in setting a goal for renewable energy in their supply chain and developing an approach and roadmap for achieving that goal, with interim milestones.
We conducted supplier engagement in support of the client’s carbon reduction strategy. We started by developing an engagement roadmap and then supported implementation, developing content and communications to drive establishment of science-based targets and to enhance carbon reporting practices.
We helped define a leading real estate and logistics company’s supplier-based offset strategy towards meeting a ‘Carbon Neutral Construction’ pledge, alongside developing the company’s communications.
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Anthesis has offices in the U.S., Canada, UK, France, Ireland, Italy, Germany, Sweden, Spain, Portugal, Andorra, Finland, Colombia, Brazil, China, the Philippines and the Middle East.