Green Power Purchasing: How Corporations are Leading the Charge in Supporting Renewable Energy

There has been a significant increase in corporate adoption of renewable energy worldwide. Corporations support renewable sources of energy through green power purchasing, which involves purchasing electricity from renewable sources such as wind, solar, and hydro.

Understanding Green Power Purchasing

Green power purchasing involves corporations buying renewable sources of energy certificates (RECs) or power purchase agreements (PPAs) from energy producers. RECs represent the environmental attributes of one megawatt-hour (MWh) of renewable solar energy generation. In contrast, PPAs represent a contractual agreement between a renewable wind energy producer and a corporation to purchase a certain amount of energy at a fixed price over a defined period.

Corporations can purchase RECs or enter into PPAs directly from energy producers or through intermediaries such as utility companies or energy service providers. By doing so, they support the development of renewable sources of energy projects and reduce their carbon footprint.

Benefits of Green Power Purchasing

Green power purchasing offers a range of benefits for corporations looking to support renewable power and reduce their carbon footprint. By purchasing renewable power, corporations can meet their sustainability goals, save money, gain a competitive advantage, and have a positive environmental impact. 

• Meeting Sustainability Goals

Green power purchasing effectively allows corporations to meet their sustainability goals. By purchasing energy from a solar power plant in India, corporations are reducing their reliance on fossil fuels and supporting the development of a cleaner, more sustainable energy system.

• Cost Savings

Green power purchasing can also result in cost savings for corporations. With the decreasing cost of solar energy in India, purchasing energy can be cost-competitive with traditional energy sources in some regions. In addition, purchasing energy through a long-term PPA can provide price certainty and stability, reducing the risks associated with volatile energy markets.

• Competitive Advantage

Adopting sustainable business practices can also provide a competitive advantage for corporations. Customers, investors, and employees increasingly demand that corporations take action on climate change, and supporting solar energy through green power purchasing can help corporations demonstrate their commitment to sustainability.

• Positive Environmental Impact

The most significant benefit of green power purchasing is its positive environmental impact. Corporations are reducing greenhouse gas emissions and helping mitigate climate change’s impacts by supporting the development of solar energy projects.

Case Studies

Several corporations have already made significant commitments to green power purchasing. For example, Microsoft has committed to being carbon negative by 2030 and, to date, has purchased more than 1.3 gigawatts (GW) of energy through PPAs. Google has also committed to purchasing enough energy to power its entire global operations and has purchased more than 5.5 GW of energy through PPAs and direct investments.

In The End

Green power purchasing is a powerful tool for corporations looking to support energy and reduce their carbon footprint. By purchasing energy through RECs or PPAs, corporations can meet their sustainability goals, save money, gain a competitive advantage, and have a positive environmental impact. As more corporations adopt green power purchasing, the demand for solar companies in India will continue to grow, leading to a cleaner and more sustainable energy system.
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