Renewable energy buyers across the globe are feeling the effects of the COVID-19 crisis. During this uncertainty, it’s crucial for corporates to stay informed of any changes in the market that may impact them. Below, Cleantech Operations Manager Wes Tappmeyer answers 3 key questions about the current landscape for corporate energy buyers, based on our recent webinar.
Wes Tappmeyer leads clients through the creation of renewables strategy and the implementation of tactical projects to achieve goals. His energy market expertise includes gas sourcing, commodity contract negotiation, managing supplier credit vetting program, asset optimization, and forward market financial modeling.
What’s currently happening in the corporate renewables space?
Key players including corporate offtakers, project developers and financiers are all experiencing unique effects from the market disruption caused by COVID-19. In addition, regulatory impacts, such as any changes to the Investment Tax Credit (ITC) or Production Tax Credit (PTC) in the U.S. or the Green Deal in Europe, are also affecting the momentum of corporate renewable transactions. In the webinar, we take a deeper dive into the questions corporate buyers are asking and what we’re seeing in the marketplace.
Access the webinar recording here.
Despite the volatility in the energy market, the corporate renewables agenda is very much alive. A poll we ran during the webinar showed that 72% of participants are either moving ahead with their renewable energy goals or have accelerated them. Only 2% had completely stopped.
It’s inspiring to see our clients continuing to push their renewable energy goals forward, even now. Together, we are finding ways to tackle potential short-term hurdles and prepare them for long-term renewable investments when our global situation has stabilized.
What’s important for companies that have just begun their renewable energy journey to know?
Corporate renewable procurement, specifically when it comes to signing a power purchase agreement (PPA), can be a lengthy internal process requiring the education and engagement of many stakeholders. From beginning to end, the process can take anywhere between 9 to 24 months. So, while some companies might be limited in making external procurement decisions right now, it’s an opportune time to align internal stakeholders.
Having your stakeholders aligned will put you in a favorable position to go to market for renewables once your business begins to rebound from the crisis. With many urgent items likely topping the corporate agenda, dedicated renewables planning, transparency and stakeholder education are key in making sure you stay on track.
In addition to moving forward on current targets, sustainability leaders are constantly thinking about next generation goals. Disruption may free up much needed time for scenarios planning and building consensus around what the organization will do to make their operations more sustainable and resilient.
How should corporate renewable energy buyers prepare for the future of renewables?
While we have seen some project delays and constraints in financing, investing in renewables continues to be a priority for companies across the globe. And it should be. Regardless of industry, organizations that invest in sustainable operations through long-term planning are generally better prepared to withstand disruption.
Our team is working to help foster increased transparency between corporate buyers and developers. We’ve recently conducted a detailed survey among our global network of developers resulting in market intelligence about how and when parties are able to transact. We intend to continue this survey on a recurring basis to help all parties involved find common ground in this time of uncertainty. As the impacts of market developments take shape, we will share more on our blog. You can stay tuned by subscribing to our weekly digest.
Disruption only makes the call for sustainability stronger. We’re working with our clients on a day-to-day basis to keep them informed, and prepare for a future of renewables.
We invite you to access the webinar recording here.