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Uniting as a Community:
Contributing to the Cause
Where onsite renewables are not an option
for companies, community renewable energy
projects should be considered. These programs
offer great alternatives to companies who are
unable to install RE at their site or for where
building ownership is an issue: i.e., commercial
building tenants.
These projects are predominantly solar
however, there are some community projects
where wind farms have been established.
Participants in this model commit to purchase
a defined quantity of electricity or generation
capacity and this is passed through as an
ongoing payment similar to an electricity bill
for a defined period to time.
These projects are predominantly administered
by a not-for-profit community group or by
an energy retailer. In addition to the benefits
of obtaining clean energy, these projects
help to improve customer relations between
businesses and locals. Community energy
models have been utilized in European markets
like Denmark since the 1970s and continue to
grow in popularity worldwide as organizations
look to re-engage with the local community.
Corporate Power Purchase
Agreements (PPA)
A Corporate Power Purchase Agreement (PPA)
is a long-term contract where a business agrees
to purchase electricity directly from an energy
generator. The corporate off-taker will enter into
a fixed term PPA (usually 10 to 15 years) with a
renewable energy generator to consume all or
part of the energy generated by the plant for
a fixed price per KWh, this price is likely to be
subject to indexation. In some circumstances,
a third party, usually a licensed energy retailer,
will be the off-taker and will then on sell the
electricity and renewable energy certificates or
subsidies to the corporate entity. The renewable
energy generator will need to commit to
generating a minimum quantity of electricity
that can be passed through to the corporate off-
taker. The electricity sold under a PPA can be
from existing renewable energy supply or a new
build project.
Larger organizations like Google use this model
and up until recently, it was not always readily
available to smaller users (less than 100MWH)
as they do not generate enough electricity
demand. However, more recently contracts
of less than ten years with energy use of less
than 10MWh have been offered to customers.
Another model that has been utilized is a
group-buying agreement where a number of
organizations group their energy usage together
in order to negotiate a more competitive
corporate PPA agreement with a real estate
generator.
It is essential that businesses keep pace with
industry developments and renewable energy
has proven itself as an essential tool in meeting
corporate energy security and sustainability
goals.
We would recommend
that you seek advice
from your sustainability
advisor at Cushman
&Wakefield who can
help you to assess your
options and develop
a robust renewable
energy strategy for your
organization based on
your needs.
Real estate investment should be an integral
part of any business strategy and planning
for all large energy users.
54 The Occupier Edge
ALAN SOMERVILLE
Head of Energy, Infrastructure
& Sustainability, EMEA
GARY GRAHAM
Director of Energy
Management
Global Occupier Services
NG YUAN SOO
Senior Director
Energy & Sustainability