1. Market and Industry Trends
Corporate Sourcing of Renewables:
Market and Industry Trends
Welcome and Introduction
REmade Index 2018
6 June 2018 • Brussels

2. Climate Impact 2

3. Corporate Sourcing of Renewables
Achieving the Paris Agreement
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4. Corporate Sourcing of Renewables
IRENA analysis is based on large global data exercise and a peer-reviewed methodology.
The report provides an overview of corporate sourcing activities through:
1) An analysis of companies that voluntarily reported data in 2017 through three channels: CDP’s climate change programme, RE100’s annual reporting and IRENA’s corporate survey. Out of the reporting companies, most (>98%) are large publicly listed private-sector companies with more than 250 employees and an annual revenue of at least USD 200 million. The data has been reported following the Greenhouse Gas Protocol Scope 2 Guidance standardising how corporations measure emissions from purchased or acquired electricity.
2) An analysis of the country surveys that went out to IRENA Member states in 2017.
The report is based on a methodology paper that was reviewed thoroughly at the end of 2017 – beginning of 2018.
Only companies that actively source renewable electricity were considered in the analysis.
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5. Corporate Sourcing of Renewables
Corporate sourcing of renewables is already seen in more than 75 countries. The majority of companies are head-quartered in Europe and North America, with emerging markets on the rise.
According to IRENA’s latest study on Corporate Sourcing of Renewables, companies sourced renewable electricity in 75 countries either through power purchase agreements (PPAs), utility green procurement programmes or unbundled energy attribute certificates (EACs).
Countries in Europe and North America continue to account for the bulk of corporate sourcing but lately rising demand for renewable electricity has been noted among companies headquartered in the Asia Pacific region and Latin America.
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6. Corporate Sourcing of Renewables
The world market for corporate sourcing of renewables in 2017 reached about 465 terawatt-hours (almost the level of France’s total electricity demand).
More and more companies around the world are voluntarily and actively procuring RE or investing in self-generation of renewable energy. Driven by the last decade’s unprecedented reduction in the cost of renewables in combination with a growing demand for corporate sustainability among investors and consumers, and enabled by policy. Renewables have become an attractive source of energy.
Active corporate sourcing of renewable electricity reached 465 terawatt-hours in 2017, representing approximately 3.5% of total electricity demand in the Commercial & Industrial sector, and 18.5% of total renewable electricity demand in the Commercial & Industrial sector.
Production for self-consumption is the most common sourcing model, followed by the purchase of unbundled energy attribute certificates (EACs) and power purchase agreements (PPAs).
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7. Corporate Sourcing of Renewables
Companies sourcing renewable electricity come from diverse sectors and industries.
Companies sourcing renewable electricity come from various sectors, demonstrating that the trend is widespread and dynamic. The graphic here gives you a very small glimpse of what you can find in the IRENA report in terms of renewable electricity consumption and production index. The analysis is based on what companies reported in 2017, so it reflects data of 2016, and we have seen quite a lot of additional developments since then.
By volume, the majority of renewable electricity was consumed in the Materials sector (grey: e.g. iron, steel, aluminium and pulp & paper), such as by Rio Tinto and United Co Rusal.
The highest shares of renewable electricity consumption are found in the Financial (24%) and Information Technology (12%) sectors as you can observe with for e.g. Microsoft at almost 100%.
In terms of self-generation (yellow), East Japan Railways has the highest sourced renewable electricity volume, followed by companies like IKEA.
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8. Corporate Sourcing of Renewables
The untapped potential for corporate sourcing of renewables is significant.
Companies in the Commercial & Industrial sector account for about two thirds of the world’s end-use of electricity. As their demand for renewable energy increases, they have the potential to play an important role in driving investment in renewables and contributing to global climate objectives.
In the current trajectory and if corporate ambitions hold steady, corporate global demand for renewable electricity will grow to at least 2,150 TWh by 2030 and TWh by This would correspond to only 20% of the renewable electricity demand by the Commercial and & Industrial sector in Far from cost-effective potential of 85%, in 2050 which would be some 19,000 TWh. Much growth potential remains.
Already 111 companies have reached levels of in between % of renewable electricity sourcing, 50 companies even reached a 100%. This shows that high ambitions and significant acceleration of uptake is feasible.
Note: 2030 and 2050 are both extrapolated:
For the Active Corporate Sourcing bars: based on an extrapolation of companies that reported and expected active sourcing for 2030 and 2050 if nothing changes and targets/ambitions remain the same (so BAU)
For the C&I electricity demand (and RE electricity demand of 63% and 85%): based on REmap numbers
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9. Corporate Sourcing of Renewables
Companies are accelerating their transition to renewable energy, with installed costs expected to decrease by 2025:
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10. Corporate Sourcing of Renewables
To enable the energy transformation, corporate sourcing of renewables will need to be scaled up. This requires a broad participation of companies of all sizes and governments. Already light policy adjustments can stimulate a rapid market pick-up.
Companies
Establish, revise or increase ambitions to accelerate the decarbonisation of operation
Raise efforts to support projects that trigger additional investment in renewable energy
More than half of the analysed companies source renewable electricity. Yet only 17% have a renewable electricity target in place.
The potential is vast. If corporate renewable energy sourcing can be scaled up significantly as shown in the last slide, it can make a tremendous contribution to accelerate the global energy transformation.
Corporates can support this shift by accelerating their corporate ambitions and target setting. Many targets expire in 2020 and can be replaced by strengthened longer term targets. Other companies that have not yet done so can join effort and set targets. Corporates need to focus their efforts on projects that generate additional investment in renewable energy.
Governments can stimulate a rapid market pick-up already through light policy adjustments.
Ensure transparency and accountability: a strong system for issuing, tracking, and certifying energy attribute certificates
Create a market structure that allows third party access: allowing direct trade between corporate buyers and developers
Encourage utilities and electricity suppliers to provide options for corporate sourcing of renewables
Stimulate direct investments in the production for self-generation of renewable energy: e.g. by enabling grid interconnection and allowing net metering
Governments can also help remove uncertainty for investors, by giving full transparency with regard to the enabling regulatory framework, administrative requirements, and financing tools available. Comprehensive and ambitious national targets and plans for renewable energy uptake will greatly help in this regard.
Governments
Support a credible and transparent system for issuing, tracking, and certifying energy attribute certificates
Create an energy market structure that allows for direct trade between corporate buyers and developers
Work with utilities or electricity suppliers to provide options for corporate renewable energy sourcing
Stimulate direct investments in production for self-generation of renewable energy 10

11. To download the full report visit
Thank you very much and we, at IRENA, very much look forward to continue working with our partners to jointly help implement the recommendations and accelerate this exciting trend!
24 May 2018 • Copenhagen