April 2016 Newsletter


Table of Contents
Market Update
Celebrating Recent Deals
Upcoming Events and Webinars
BRC’s Latest:
New Website
BRC Marketplace
BRC Products
Blogs and Insights
Media Coverage
New BRC Members

BRC-NewsletterIcons-MarketUpdateMarket Update
2015 was a record-setting year for corporate renewables, with 3.2 GW of utility-scale renewable transactions signed by corporate buyers.
BRC Deal Chart April 2016However, 2016 has begun more slowly: only 230 MW was announced in the first quarter. We see reasons to suggest this slowdown may be temporary. First, it could be a delayed reaction to uncertainty around PTC/ITC extension. Second, it may have to do with seasonality: in 2015, a majority of deals were announced in the fourth quarter.

BRC Quarterly Data April 2016

We hear from the market that corporate buyers have issued a number of RFPs in recent months, with an aggregate implied capacity of several gigawatts of new projects. However, the slowdown also raises questions. How is the market being impacted by historically low natural gas prices? What challenges and opportunities exist for buyers and sellers within the current market? These topics will be explored further at the Renewable Energy Buyers Alliance (“REBA”) Summit May 19–20, which we will co-host with WWF, WRI, and BSR.

External perspective: The American Wind Energy Association (AWEA) released their annual report yesterday, April 12, 2016, stating that for the first time, non-utility customers represented the majority of electric generating capacity through wind PPAs in a given year. Corporates and other non-utility customers signed 52%, or 2,074 MW, of wind power capacity contracted through PPAs in 2015. This change has been significantly enabled by the price of wind falling by 66% from 2010.

We are continuing to see new buyers enter the market: 28 corporate buyers have now signed deals, and new buyers are joining the BRC weekly. Bringing new buyers to the marketplace will be key to helping us hit our collective target of 60 GW by 2030.

BRC-NewsletterIcons-RecentDeals Celebrating Recent Deals

Congratulations to our members and sponsors (in bold) on their latest announcements:

  1. Salesforce’s 24 MW wind PPA in Texas with EDF Renewable Energy
  2. Lockheed Martin’s 30 MW solar PPA in North Carolina with Duke Energy Renewables
  3. Steelcase’s 25 MW wind PPA in Oklahoma with Apex Clean Energy
  4. 3M’s 120 MW wind PPA in Texas with Invenergy
  5. Iron Mountain’s 27 MW wind PPA in Pennsylvania with New Jersey Resources

If you have an upcoming deal, get in touch so we can ensure your transaction has coverage in the market.

Upcoming Events and Webinars

The corporate renewables market is coming together at the:

Renewable Energy Buyer’s Alliance May Summit

Hosted by BRC, BSR, WRI, and WWF, the event will be held May 19–20 at the
Microsoft campus in Redmond, WA. The event is by invitation only.
Contact Jill Harley (jharley@rmi.org) to learn more.
Preliminary Agenda
MicrosoftCommons_web

REBA Sponsors

 

 

BRC and SEIA Webinar – April 14 at 12pm PT/3pm ET – sign up now.

We are proud to collaborate with the Solar Energy Industry Association (SEIA) to present a webinar focused on corporate procurement, hosted by BRC Managing Director Hervé Touati. Please join us in this free webinar to learn more about the solar industry’s opportunities, challenges, and outlook for corporate buyers.

BRC-NewsletterIcons-BRCLatestBRC’s Latest

BRC Website

Check out our new website at

Businessrenewables.org

BRC Website Screenshot

Our newly designed website hosts a wealth of information and tools to help accelerate the market for corporate procurement of renewables, including our Marketplace (members only), the latest blogs, insights, and media coverage. The BRC products and case studies (members only) will be moved over to the new website in May.

BRC Marketplace

Since launching the Marketplace last November, our database of projects has grown to include 51 wind, solar, and hydro projects, with a combined generation capacity of 9.3 GW, almost 3 times more capacity than what was signed by corporate buyers in 2015. These projects have been entered by 18 different developers and present small (200 MW) opportunities across the U.S.

The BRC Marketplace Task Force helped the BRC team identify and prioritize a number of new features that we will roll out by our May summit. Most notably, buyers will be able to post their needs on the platform and sellers will be able to propose projects that would help meet those needs.

To access the BRC Marketplace, please visit marketplace.businessrenewables.org (member-only login required).

BRC Marketplace Screenshot
The picture above is illustrative and does not contain actual projects.

BRC Products

By the May REBA Summit we will also make available a number of new primers and documents:

  1. A risk allocation primer, which describes risks, options for allocations, and statistics on what options are most commonly used in transactions
  2. A finance primer, which provides insights on what makes PPAs “bankable”

Blogs and Insights

Market Price Risk and the “Hockey Stick PPA”

To keep the corporate renewable energy market growing, remaining barriers must be removed. And according to the participants at the November BRC conference, the most significant barrier is risk allocation—by a wide margin.
Read More…

5 Ways to Sustain the Corporate Renewables Market

The year 2015 represented a major turning point for electricity generation in the United States. The country retired 14 GW of fossil-fueled generation and brought online 16.4 GW of carbon-free generation. What might it take to continue the meteoric rise of the corporate renewables market?

Read More…

First-Time Buyers Are Dominating Corporate Renewable Purchasing
First-time corporate buyers are entering the market in droves and now account for the majority of both deal announcements and contracted MW of wind and solar energy.

Read More…

Media Coverage

BRC_natgeo_screenshot
BRC_WSJ_screenshot

For a comprehensive list of media coverage, check out our
Flipboard.

 


New BRC Members

Welcome to our new BRC Members who have joined since the January 2016 newsletter! We’ve grown from 28 founding members and sponsors in November 2014 to 96 members today.

New corporate members include, among others, Adobe, Inc.; Akamai Technologies; Amazon Corporate, Belk; DSM; Wal-Mart Stores, Inc.; Whole Foods Markets, Inc.

New sponsors include, among others, BayWa, Brookfield Renewable Energy, Coronal Group, Enel Green Power, EverPower Wind, Exelon Corporation, Potentia Solar Inc., Recurrent Energy

FOR MEMBERS

  • Do you have an upcoming deal announcement? Let us know! We can assist with media outreach and other communications support. Contact Lily Donge for more information (ldonge@rmi.org).
  • Have you checked out the BRC’s primers and guides? Our accounting primer is a popular go-to resource. Get in touch (brc@rmi.org) to find out how to access and utilize BRC’s primers and guides.
  • Working on your company’s sustainability report? BRC logos are now available for BRC members and sponsors to use on your websites. Click here for the files and use guidelines; please contact us with any questions (brc@rmi.org).

BRC Newsletters Online: To view BRC newsletters online, click here.

Contact Us: Your feedback on this newsletter is most welcome. Please contact Jill Harley (jharley@rmi.org) or email brc@rmi.org.

This BRC newsletter is intended to provide factual information and is based on publicly available information, but no representation is made with respect to its accuracy or completeness. None of the information can be construed as investment or accounting advice. RMI reserves the right to include, change, or edit any content.