Renewable Resource Procurement

Earlier this week, Microsoft shared that we reached our milestone of matching 100% of our annual global electricity consumption with renewable energy. Today, I'm sharing what global progress looks like at a local level. Partnerships are the engine of progress. We work closely with renewable energy developers around the world to help bring new clean power onto the grid. One of the most important tools we use to do this is a Power Purchase Agreement, or PPA. A PPA is a long-term agreement where an organization like Microsoft commits to buying electricity from a renewable energy project at a set price. For us, this provides a predictable source of clean energy. For the energy developer, it provides long-term revenue they can count on. That reliable revenue also helps developers secure additional financing to build new projects, like solar energy, that might not otherwise get built. In this way, PPAs don’t just buy clean power, they help expand new renewable energy capacity. Through these agreements, we’ve contracted 40 gigawatts of renewable energy to date. Each PPA is different, shaped by local geography, regulations, and community priorities. In our latest Source blog, we’re highlighting six examples of these partnerships, from a solar project in Illinois that supports agricultural programs and job training for students, to a women‑run wind farm in rural Brazil. Read more about these partnerships and the communities they support: https://lnkd.in/gmHvrusZ

RE100 recently released their comprehensive 2024 Annual disclosure report, one of the most in-depth looks we have into corporate renewable energy procurement. (https://lnkd.in/evzFKqVt) 4 charts, 4 insights: 1️⃣ Over 300 companies and 500 TWh under the RE100 banner, that brings great visibility to show that companies want renewables. 2️⃣ Globally, companies claim to be 53% renewables. Europe = 83%, North America = 65% figures for Asia are lower. 3️⃣ Globally, PPAs make up only 27% of renewable procurement. Unbundled EACs remain the primary sourcing method, and these are often unmatched in time and space to actual electricity demand. PPAs have decreased as a share of RE100 procurement for the second year in a row, access issues in APAC markets may play a role here, highlighting the important of maintaining pressure to open up more challenging markets.  4️⃣ In North America, PPAs are the primary sourcing method while in Europe and Asia EACs and contracts with suppliers dominate. While some argue that  today’s clean energy accounting rules favour PPAs - the evidence shows they remain a relatively small share of overall procurement and are below 50% in all regions.  RE100 is and will remain an important campaign to move companies toward purchasing more renewables. Yet as renewables become a significant share of the electricity mix, it’s also important to look under the hood and drive towards more accurate and impactful claims - in particular ensuring that renewables being claimed can actually be consumed with deliverable market boundaries and hourly matching. Climate Group’s new 24/7 Carbon-free Coalition (https://lnkd.in/et9fp4nR) helps companies get on the journey to hourly matching and brings greater credibility to their clean energy claims. PPAs which focus on hourly matching and deliverability, offer more hedging benefits and will incorporate storage which remains niche in today's renewable procurement products. Suppliers will also be encouraged to shift their portfolios to ensure they can deliver green supply to customers when and where they need it, not just when it’s produced. This is an example of the natural evolution of norms and standards - as global grids are transformed by renewables, we now need a new set of rules to ensure their continued integration around the clock - today’s rules are not built for that challenge, tomorrow’s rules should be.

The Strait of Hormuz - through which 20% of the world's oil and LNG flows - is under blockade. Iran and Israel have struck each other's energy infrastructure. Qatar's Ras Laffan, the world's largest LNG export facility, has sustained serious damage. Crude oil prices, European gas prices, gasoline gas prices have surged. Central banks that were expecting rate cuts are now pricing in rate hikes. Gold has dropped 15% in three sessions as investors liquidate liquid assets. Equity markets are in decline. The UK 10-year yield has exceeded 5%. In the middle of this chaos, here is what I keep coming back to: The strongest argument for accelerating clean energy procurement has never been ideological. It has always been economic. Every spike in fossil fuel prices demonstrates the same truth: dependence on globally traded hydrocarbons is a structural risk to any business's cost base. Meanwhile, Google just signed a 20-year, 2.7 GW clean energy deal with DTE Energy for a new Michigan data center - funding 1.6 GW of solar, 400 MW of battery storage, and 300 MW of additional clean resources, with costs shifted entirely away from residential ratepayers. That is what strategic energy procurement looks like in 2026: long-term, fixed-price, clean, and insulated from geopolitical volatility. The companies locking in renewable PPAs and building diversified clean energy portfolios today are not just reducing emissions. They are managing the risk that the current crisis makes painfully visible. #CleanEnergy #EnergyTransition #Renewables #PPAs #EnergyPrices #CorporateProcurement #RiskManagement

🔍 Did you know that Renewable Electricity—through RECs—can be procured on behalf of others? As companies deepen their climate strategies, a growing number are exploring how to reduce Scope 3 emissions by helping their suppliers and customers transition to renewable electricity. According to guidance from the U.S. EPA and the GHG Protocol issued in 2022, it’s possible to: ✅ Purchase and retire Renewable Energy Certificates (RECs) ✅ Allocate them to value chain partners (e.g., suppliers, tenants, or customers) ✅ Enable those partners to lower their market-based Scope 2 emissions ✅ Reflect those reductions in your own Scope 3 inventory This approach is already in use by organizations like Google and Iron Mountain, who support energy transitions across their ecosystems. In fact, nearly 44% of RE100 members are engaging their supply chain on renewable electricity. But as with any evolving practice, it raises thoughtful questions: What are the checks needed to avoid double counting? How do we balance cost-sharing between buyers and suppliers? Does this drive long-term structural change—or offer a temporary reduction path? At its core, this model invites a broader perspective: climate action not just as a corporate footprint, but as a shared responsibility across the value chain. 📢 Can this type of renewable procurement become a scalable part of Scope 3 strategy? #Scope3 #RECs #GHGProtocol #CarbonAccounting #RenewableElectricity #Sustainability #Decarbonization #ClimateStrategy #ValueChainEngagement

Renewable power purchase agreements can also be used by cities to procure electricity from wind and solar. Energy Cities & Regulatory Assistance Project (RAP) just launched a new hands on guide for cities who want to do this. A power purchase agreement (PPA) is a contract used by a purchasing entity to procure electricity from a project developer. This contract specifies the volume and price of the energy purchased and the duration of the agreement. “Renewables PPAs” specifically procure electricity from renewable energy projects, such as wind and solar PV and are typically signed for durations between 5 and 20 years. By having visibility on future revenues, the developer can more easily finance the construction and operation of the generating facility while the purchasing entity can benefit from low and stable electricity prices, while progressing towards its environmental objectives. While these types of contracts are normally concluded between two private companies, they have recently started to be used by municipalities as an instrument to foster renewable energy deployment at local level. Following the energy price crisis of 2022, the European Commission promotes PPAs and has made it possible for Member States to de-risk renewable PPAs, for example by setting up state-backed or private guarantee schemes. Led by Sara Giovannini & Bram Claeys. https://lnkd.in/gqndurbv

Daniel Dus, the CEO of Cleantech Industry Resources(CIR), on eRENEWABLE and The Green Insider Podcast, shares his 18-year experience in the clean tech industry, including his work with Martifer Group, and Adani Group. He also introduced a new service that has commoditized renewable project development and engineering services, a first in the industry. https://lnkd.in/gYTFkjDN Apple https://lnkd.in/ggFbb6B6 Spotify https://lnkd.in/gR2B3eMN The conversation included: -Discussion on developing renewable energy projects: site assessments, permitting, and engineering. -The company simplifies the process for clients by pre-scoping and pre-pricing tasks nationwide. -Management of procurement process: competitive solicitations and vendor selection. -Assignment of a project manager and dedicated inbox for transparency and direct communication. -Emphasis on time and cost efficiency. -Ability to handle projects of all sizes and provide tools for developers. -Cost-plus pricing model and use of a pricing calculator. -Involvement in various municipal projects. -Discussion on procurement rules and satisfying customer needs. -Importance of transparency and education in the market. In episode 282 a lot of material was covered by a true expert. Thank you to Danial Dus from CIR for sharing his knowledge and experience on today’s podcast.

𝐓𝐡𝐢𝐬 𝐃𝐞𝐩𝐚𝐫𝐭𝐦𝐞𝐧𝐭 𝐢𝐧 𝐲𝐨𝐮𝐫 𝐨𝐫𝐠𝐚𝐧𝐢𝐬𝐚𝐭𝐢𝐨𝐧 𝐦𝐢𝐠𝐡𝐭 𝐛𝐞 𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐞𝐯𝐞𝐫𝐲𝐭𝐡𝐢𝐧𝐠 𝐭𝐨𝐠𝐞𝐭𝐡𝐞𝐫. With project budgets swelling into billions, capital gets projects started, but it’s Procurement that keeps them moving, especially amid rising complexities. Here’s what we are learning from leaders in Data Centers and Renewables: 💹 Tariffs are squeezing renewables costs: New US solar and aluminum tariffs are increasing costs for clean energy infrastructure by around 30% per component, slowing deployment and inflating budgets ⏳ Lead times remain long: Critical items like transformers, cables, and semiconductors now take 2 to 4 years to deliver, risking serious project delays 🌐 Geopolitical shifts disrupt supply chains: Export controls and tariff shocks are forcing renewables developers to rethink sourcing strategies and move toward friendlier markets These are not short-term blips. Rising demand for power, AI infrastructure, and ageing grid and data centre networks require foresight. Here’s what you can do: ✅ Develop procurement strategies 2–5 years ahead ✅ Vet suppliers on resilience, capacity, cost, and sustainability ✅ Secure long-term contracts with flexibility for change ✅ Build scenario plans around tariffs, export delays, and supply chain disruptions 𝐏𝐫𝐨𝐜𝐮𝐫𝐞𝐦𝐞𝐧𝐭 𝐢𝐬𝐧’𝐭 𝐣𝐮𝐬𝐭 𝐛𝐮𝐲𝐢𝐧𝐠. 𝐈𝐭 𝐢𝐬 𝐡𝐨𝐰 𝐲𝐨𝐮 𝐬𝐚𝐟𝐞𝐠𝐮𝐚𝐫𝐝 𝐭𝐢𝐦𝐞𝐥𝐢𝐧𝐞𝐬, 𝐛𝐮𝐝𝐠𝐞𝐭𝐬, 𝐚𝐧𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭 𝐯𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐢𝐧 𝐚𝐧 𝐮𝐧𝐜𝐞𝐫𝐭𝐚𝐢𝐧 𝐰𝐨𝐫𝐥𝐝. 👉 If you’re running Renewables or Data Center projects and want to strengthen your procurement teams, reach out.

Actions To Deliver 3x Renewables By 2030, The report by Global Renewables Alliance (GRA) addressed the focus onng on key enablers to increase renewables at the needed scale, speed, and distribution: increased financing, faster permitting, strengthened supply chains, and building grid infrastructure. Here are the key actions under each category: 1. Finance - Mobilize Renewable Energy Financing: Repurpose public capital flows and development financing to renewable energy infrastructure. - Innovative Financing Models: Collaborate with public and private sectors to create financing models like blended finance and green bonds. - Align Renewable Energy Targets: Update countries' renewable energy targets and plans to attract investors. 2. Grids - Expand and Modernize Infrastructure: Invest in grid expansion, modernized grid management, and electricity storage. - Cross-Sector Planning: Boost cross-sector planning and regional power grids. - Streamline Permitting: Simplify permitting for new and upgraded grid infrastructure. 3. Permits - Centralize Permitting Authority: Establish a central authority to oversee and manage permits. - Digitalization and Resources: Invest in digital tools and allocate more resources to permitting authorities. - Best Practices: Introduce best practices in administration, policy support, and public engagement. 4. Supply Chains - Strengthen Supply Chains: Collaborate with the industry to diversify production sources and localize value chains. - Socially Responsible Procurement: Promote sustainable supply chain assurance schemes. - Fair Trade Practices: Foster transparent trade practices for critical renewable energy technologies. These actions are essential to achieve the goal of tripling renewable energy capacity by 2030. #CleanEnergy #RenewableEnergy #EnergyTransition #NetZero #EnergyInfrastructure #PublicPrivatePartnerships #GreenInvestments #CleanTech

**Renewable Energy Nerds UNITE!** If you missed #RE+ or #NYClimateWeek (or spent the past weeks catching up after being there), you’re not alone! Now is the perfect moment to revisit two of the hottest themes shaping our next decade of grid decarbonization and supplier engagement. 🔗 First, explore why new renewable energy procurement needs to trump the “24/7 matching” narrative in supply chain standards: Why New Renewable Energy Should Trump 24/7 Matching - 🔗 Next, see how the latest Center for Resource Solutions (CRS) CEAP guidance sets a new playbook for verifiable clean energy claims—and how Zettawatts’ AREC platform checks every box for corporates and suppliers: Zettawatts and the CRS CEAP Indicators: Meeting the Market’s Call for High-Impact Clean Energy Procurement Both blogs (links in comments) are a must-read for climate-minded CFOs, sustainability execs, procurement leads, and channel partners looking to separate signal from noise in a crowded market. If thoughtful procurement, credible additionality, and scalable Scope 2/3 decarbonization are on the Q4 agenda, these frameworks matter. Tagging THOSE who shape and challenge the future of clean energy standards and large-scale project development. Your perspective drives this conversation further; would love to hear what caught your eye at the fall’s big events or in these articles: What question do you have about real grid impact, or how are you handling supplier requirements moving into 2026? Ever.green - Michael Leggett Center for Resource Solutions - Peggy Kellen, Todd Jones, Chip Wood, Devon Johnson, Michelle McGinty, Matt Clouse Zettawatts - Tony Hudgins, Scott Case, Dave Galinski REsurety - Lee Taylor Greenhouse Gas Protocol (GHG Protocol) special thanks: Caroline Cascio, MA #CleanEnergy #Decarbonization #ClimateWeek #REplus #SupplyChain #ARECs #CorporateSustainability #GridImpact #Scope3 #SustainableProcurement