{"id":10822,"date":"2017-12-12T11:00:12","date_gmt":"2017-12-12T19:00:12","guid":{"rendered":"http:\/\/www.palada.net\/index.php\/2017\/12\/12\/news-4594\/"},"modified":"2017-12-12T11:00:12","modified_gmt":"2017-12-12T19:00:12","slug":"news-4594","status":"publish","type":"post","link":"https:\/\/www.palada.net\/index.php\/2017\/12\/12\/news-4594\/","title":{"rendered":"Weighing the Co-Benefits of Renewable Energy Power Purchase Agreements"},"content":{"rendered":"<p><strong>Credit to Author: John Powers| Date: Tue, 12 Dec 2017 18:30:16 +0000<\/strong><\/p>\n<div class=\"entry\"> <img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-43824 size-medium\" src=\"https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/24194980_ML-300x199.jpg\" alt=\"co-benefits of renewable energy power purchase agreements\" width=\"300\" height=\"199\" srcset=\"https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/24194980_ML-300x199.jpg 300w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/24194980_ML-768x510.jpg 768w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/24194980_ML-1024x680.jpg 1024w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/> <\/p>\n<p>Corporate, industrial, and institutional (C&amp;I) buyers are choosing renewable energy power purchase agreements (PPAs) for three primary reasons.\u00a0 As they stand today, federal subsidies and technology improvements make both wind and solar PPAs financially attractive.\u00a0 PPAs also help companies manage risks associated with carbon, climate change, and a short position on energy. Finally, PPAs are a meaningful way for companies to achieve their environmental goals.<\/p>\n<p>However, these are not the only benefits of renewable PPAs.\u00a0 These other criteria\u2014referred to as <em>co-benefits<\/em>\u2014tell a compelling story about the value of renewable energy beyond cost and carbon mitigation.<\/p>\n<h3>The many co-benefits of renewable energy power purchase agreements include:<\/h3>\n<ul>\n<li><strong>Reduced water consumption<\/strong>. Water use and conventional energy production are intimately linked.\u00a0 Water is used to obtain fossil fuels, to generate <img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-43869\" src=\"https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/Climate-Change-300x201.jpg\" alt=\"health effects of renewable energy power purchase agreements\" width=\"258\" height=\"173\" srcset=\"https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/Climate-Change-300x201.jpg 300w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/Climate-Change-768x514.jpg 768w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/Climate-Change-1024x685.jpg 1024w\" sizes=\"auto, (max-width: 258px) 100vw, 258px\" \/>steam to power turbines, to extract pollutants from exhaust, and to cool production facilities.\u00a0 Renewable energy, on the other hand, <a href=\"https:\/\/blog.schneider-electric.com\/?feed-stats-url=aHR0cHM6Ly9jbGVhbnRlY2huaWNhLmNvbS8yMDE0LzAzLzIyL3NvbGFyLXBvd2VyLXdhdGVyLXVzZS1pbmZvZ3JhcGhpYy8%3D&#038;feed-stats-url-post-id=43823\" target=\"_blank\" rel=\"noopener\">uses a fraction of the water needed for the conventional generation process<\/a>, only .001 gallon\/kWh for wind and .030 gallon\/kWh for solar, compared to coal at .49 gallon\/kWh and oil at .43 gallon\/kWh.<\/li>\n<\/ul>\n<ul>\n<li><strong>Reduced pollution and improved air quality<\/strong>. Conventional electricity generation <a href=\"https:\/\/blog.schneider-electric.com\/?feed-stats-url=aHR0cDovL3d3dy51Y3N1c2Eub3JnL2NsZWFuLWVuZXJneS9jb2FsLWFuZC1vdGhlci1mb3NzaWwtZnVlbHMvY29hbC1haXItcG9sbHV0aW9uIy5XRDJyRUxJckxJVQ%3D%3D&#038;feed-stats-url-post-id=43823\" target=\"_blank\" rel=\"noopener\">doesn\u2019t only produce harmful carbon dioxide as a byproduct<\/a>; it also produces other greenhouse gases like methane, nitrogen oxide, and sulfur dioxide, alongside particulate matter, mercury, carbon monoxide, and the hydrocarbons that create\u00a0ozone.\u00a0 These byproducts lead to smog, acid rain, and many human health impacts including chronic respiratory illness (like asthma and bronchitis), headaches, cancer, and even premature death. Contrast this with the estimated <a href=\"https:\/\/blog.schneider-electric.com\/?feed-stats-url=aHR0cDovL3d3dy5hd2VhLm9yZy9NZWRpYUNlbnRlci9wcmVzc3JlbGVhc2UuYXNweD9JdGVtTnVtYmVyPTg2MzQ%3D&#038;feed-stats-url-post-id=43823\" target=\"_blank\" rel=\"noopener\">$7.3B in public health savings in 2015<\/a> attributable to wind power.<\/li>\n<\/ul>\n<ul>\n<li><strong>Job creation and economic stimulus<\/strong>. Globally, the renewable energy industry is responsible for <a href=\"https:\/\/blog.schneider-electric.com\/?feed-stats-url=aHR0cDovL3d3dy5zZTRhbGwub3JnL3NpdGVzL2RlZmF1bHQvZmlsZXMvSVJFTkFfUkVfSm9ic19Bbm51YWxfUmV2aWV3XzIwMTYucGRm&#038;feed-stats-url-post-id=43823\" target=\"_blank\" rel=\"noopener\">more than 8 million jobs<\/a> with steady, continuous <img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-43870\" src=\"https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/9634934_S-300x200.jpg\" alt=\"solar job creation\" width=\"257\" height=\"171\" srcset=\"https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/9634934_S-300x200.jpg 300w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/9634934_S.jpg 450w\" sizes=\"auto, (max-width: 257px) 100vw, 257px\" \/>growth.\u00a0 Wind turbine technicians and solar PV installers are among the <a href=\"https:\/\/blog.schneider-electric.com\/?feed-stats-url=aHR0cDovL3d3dy5ibHMuZ292L2VtcC9lcF90YWJsZV8xMDMuaHRt&#038;feed-stats-url-post-id=43823\" target=\"_blank\" rel=\"noopener\">Bureau of Labor Statistics<\/a> fastest growing jobs in the U.S., with wind turbine technician jobs expected to grow more than any other job category\u2013more than 100% by 2024.\u00a0 However, job creation isn\u2019t the only source of economic stimulus provided by the renewable industry.\u00a0 Landowners who support wind and solar farms and biomass production can secure a long-term source of revenue.\u00a0 For instance, <a href=\"https:\/\/blog.schneider-electric.com\/?feed-stats-url=aHR0cDovL3d3dy51Y3N1c2Eub3JnL2NsZWFuX2VuZXJneS9zbWFydC1lbmVyZ3ktc29sdXRpb25zL2luY3JlYXNlLXJlbmV3YWJsZXMvcmVuZXdhYmxlLWVuZXJneS1hbmQuaHRtbCMuV0Qyd1c3SXJMSVU%3D&#038;feed-stats-url-post-id=43823\" target=\"_blank\" rel=\"noopener\">wind developers in the U.S. commonly pay $2,000-$5,000 per turbine<\/a> to the landowner.\u00a0 These projects are commonly located in rural regions of the American Midwest and provide a crucial source of financial revenue to these landowners.\u00a0 Similar incentives are available in other global regions as well, <a href=\"https:\/\/blog.schneider-electric.com\/?feed-stats-url=aHR0cHM6Ly9jbGVhbnRlY2huaWNhLmNvbS8yMDE2LzA0LzI5L2luZGlhLWF0dHJhY3RlZC0xNC1iaWxsaW9uLXJlbmV3YWJsZS1lbmVyZ3ktaW52ZXN0bWVudC0zLXllYXJzLw%3D%3D&#038;feed-stats-url-post-id=43823\" target=\"_blank\" rel=\"noopener\">like India<\/a>.<\/li>\n<\/ul>\n<ul>\n<li><strong>Domestic energy security<\/strong>. The U.S. Pentagon has identified climate change to be a national security risk, one that <a href=\"https:\/\/blog.schneider-electric.com\/?feed-stats-url=aHR0cDovL3d3dy5hbWVyaWNhbnNlY3VyaXR5cHJvamVjdC5vcmcvY2xpbWF0ZS1zZWN1cml0eS8%3D&#038;feed-stats-url-post-id=43823\" target=\"_blank\" rel=\"noopener\">exacerbates global instability and makes existing threats worse<\/a>.\u00a0 Renewable energy can help mitigate this risk by reducing the emissions associated with climate change.\u00a0 Domestic renewable energy production also reduces national dependence on foreign energy interests.<\/li>\n<\/ul>\n<p>Both\u00a0<a href=\"https:\/\/blog.schneider-electric.com\/?feed-stats-url=aHR0cDovL2h1Yi5yZXNvdXJjZWFkdmlzb3IuY29tL3JlbmV3YWJsZS1lbmVyZ3kvd2hhdC1pcy10aGUtZGlmZmVyZW5jZS1iZXR3ZWVuLWRpcmVjdC1hbmQtZmluYW5jaWFsLXBwYXMtZm9yLWNvcnBvcmF0ZS1idXllcnM%3D&#038;feed-stats-url-post-id=43823\" target=\"_blank\" rel=\"noopener\">retail (direct) and financial (virtual) PPA contracting structures<\/a>\u00a0deliver these co-benefits, and C&amp;I buyers can choose either\u00a0structure depending on their goals.\u00a0 In a retail PPA, the buyer takes physical delivery of the electricity produced via a shared regional grid. \u00a0This type of\u00a0PPA can net more favorable accounting treatments (particularly under IFRS international accounting guidelines) and ensure a project is in the same grid region as a company\u2019s load. A retail structure should also lead to better correlation and hedge value of the PPA contract vs. energy spend. \u00a0However, direct retail PPAs are constrained by the fact that they must be located in the same grid region as the offtaker\u2019s load, are restricted to deregulated retail markets, and will be sized according\u00a0to total offtaker load.<\/p>\n<p>Buyers are constrained in their ability to execute retail renewable energy power purchase agreements depending on their location.\u00a0 Regulatory restrictions and state-mandated Renewable Portfolio Standards (RPS) may limit a company\u2019s retail renewable energy opportunities.\u00a0 However, in some cases, these regulations aren\u2019t slowing businesses down.\u00a0 Take MGM Resorts International, for instance.\u00a0 The state of Nevada\u2019s largest employer paid <a href=\"https:\/\/blog.schneider-electric.com\/?feed-stats-url=aHR0cHM6Ly93d3cuZ3JlZW50ZWNobWVkaWEuY29tL2FydGljbGVzL3JlYWQvSG93LU1HTS1QcmVwYXJlZC1JdHNlbGYtdG8tTGVhdmUtTmV2YWRhcy1CaWdnZXN0LVV0aWxpdHk%3D&#038;feed-stats-url-post-id=43823\" target=\"_blank\" rel=\"noopener\">$89M to leave the regulated state\u2019s utility<\/a> in order to directly use renewable energy in its Las Vegas operations.\u00a0 It is then, perhaps, unsurprising that earlier this year, the citizens of Nevada overwhelmingly <a href=\"https:\/\/blog.schneider-electric.com\/?feed-stats-url=aHR0cHM6Ly93d3cuZWNvdmEuY29tL2Jsb2cvMjAxNi8xMS9uZXZhZGEtZWxlY3RyaWNpdHktZGVyZWd1bGF0aW9uLWJhbGxvdC1tZWFzdXJlLXBhc3Nlcy1sb25nLXJvYWQtc3RpbGwtYWhlYWQv&#038;feed-stats-url-post-id=43823\" target=\"_blank\" rel=\"noopener\">chose to deregulate<\/a> their electrical grid.<img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-43863 aligncenter\" src=\"https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/US-PPA-Markets-graphic.png\" alt=\"U.S. PPA Markets Graphic \" width=\"877\" height=\"573\" srcset=\"https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/US-PPA-Markets-graphic.png 877w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/US-PPA-Markets-graphic-300x196.png 300w, https:\/\/blog.schneider-electric.com\/wp-content\/uploads\/2017\/12\/US-PPA-Markets-graphic-768x502.png 768w\" sizes=\"auto, (max-width: 877px) 100vw, 877px\" \/><\/p>\n<p>Buyers that face the regulatory hurdles present in a retail PPA can instead choose a virtual, or financial, PPA. \u00a0This PPA structure provides greater flexibility around the\u00a0size and location of a deal. Virtual PPAs can be located in any deregulated wholesale market and are not mandated to share the same grid as the offtaker. \u00a0These types of PPAs can be a great fit for companies whose primary motivators are environmental and economic rather than fixed-price-power, and for companies who have load in regulated utility territories like the Southeast or West.<\/p>\n<p>Regardless of contracting type, buyers can take claim to the environmental and social benefits of renewable energy power purchase agreements. \u00a0The choice between retail or financial structure depends solely on the buyer\u2019s key decision drivers.<\/p>\n<p>Schneider Electric has extensive experience with both retail and virtual PPA contracting structures and we\u2019ve advised our corporate clients on more than 2.5 GW of new wind and solar projects.\u00a0 <a href=\"https:\/\/blog.schneider-electric.com\/?feed-stats-url=aHR0cHM6Ly9yMS5kb3RtYWlsZXItc3VydmV5cy5jb20vNTdpd2M2MS04YTJjMHEyNw%3D%3D&#038;feed-stats-url-post-id=43823\" target=\"_blank\" rel=\"noopener\">Contact us today<\/a> to see how we can help you achieve your corporate responsibility goals.<\/p>\n<\/p><\/div>\n<p>  <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/blog.schneider-electric.com\/?feed-stats-post-id=43823\" width=\"1\" height=\"1\" style=\"display: none;\" \/><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\/renewable-energy\/2017\/12\/12\/weighing-co-benefits-renewable-energy-power-purchase-agreements\/\">Weighing the Co-Benefits of Renewable Energy Power Purchase Agreements<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\">Schneider Electric Blog<\/a>.<\/p>\n<p><a href=\"https:\/\/blog.schneider-electric.com\/renewable-energy\/2017\/12\/12\/weighing-co-benefits-renewable-energy-power-purchase-agreements\/\" target=\"bwo\" >http:\/\/blog.schneider-electric.com\/feed\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Credit to Author: John Powers| Date: Tue, 12 Dec 2017 18:30:16 +0000<\/strong><\/p>\n<p>Corporate, industrial, and institutional (C&#38;I) buyers are choosing renewable energy power purchase agreements (PPAs) for three primary reasons.\u00a0 As they stand today, federal subsidies and technology improvements make both wind&#8230;  <a href=\"https:\/\/blog.schneider-electric.com\/renewable-energy\/2017\/12\/12\/weighing-co-benefits-renewable-energy-power-purchase-agreements\/\" title=\"ReadWeighing the Co-Benefits of Renewable Energy Power Purchase Agreements\">Read more &#187;<\/a><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\/renewable-energy\/2017\/12\/12\/weighing-co-benefits-renewable-energy-power-purchase-agreements\/\">Weighing the Co-Benefits of Renewable Energy Power Purchase Agreements<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\">Schneider Electric Blog<\/a>.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[12389,12388],"tags":[12431,526,14906,12769,6549,714,12427],"class_list":["post-10822","post","type-post","status-publish","format-standard","hentry","category-scadaics","category-schneider","tag-energy-management","tag-health","tag-job-creation","tag-power-purchase-agreement","tag-renewable-energy","tag-security","tag-sustainability"],"_links":{"self":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/10822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/comments?post=10822"}],"version-history":[{"count":0,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/10822\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/media?parent=10822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/categories?post=10822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/tags?post=10822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}