Environmentalism is fast becoming a top concern in France – a rooftop concern, to be precise. Excitingly, the nation has just passed new legislation that will require all upcoming commercial construction projects to feature either green roofs or solar panels above their top floors. By now, most people are at least passingly familiar with the benefits of solar panels, but green roofs remain unknown to the general public. A green roof is one that is covered in lush plant life, and the perks extend well beyond the aesthetic. Because green roofs help to insulate, buildings are able to slash seasonal energy costs for both heating and air conditioning by approximately 25 percent.
Bloomberg, Cox Enterprises, Gap Inc. (NYSE: GPS), Salesforce (NASDAQ: CRM), and Workday (NASDAQ: WDAY), with guidance from LevelTen Energy and its renewable energy procurement platform, closed 42.5 megawatts of a 100 megawatt North Carolina solar project by global renewable energy developer, service provider and wholesaler, BayWa r.e. This group of companies, coming together as the Corporate Renewable Energy Aggregation Group, is the first example of companies aggregating similar, relatively small amounts of renewable energy demand to collaboratively enter into a virtual power purchase agreement (VPPA), collectively acting as the anchor tenant for a large offsite renewable energy project. The unprecedented coordination between five international businesses lays the groundwork for other corporates to procure renewable energy cooperatively, maximizing value and reducing risk.
The five members of the group, with support from the Business Council on Climate Change (BC3) and the Business Renewables Center (BRC), began collaborating in late 2017. Many potential renewable energy purchasers have historically been faced with a key problem: businesses looking to procure smaller energy loads have been unable to contract directly with large offsite renewable energy projects due to limited energy demand. This has so far restricted business’s ability to catalyze the development of new renewable energy projects. To solve this problem, the group evaluated several mechanisms for aggregating smaller amounts of renewable energy demand to afford them the collective buying power that is typically necessary to contract directly with a large offsite renewable energy project.
The eventual solution chosen by the group was a uniform VPPA contract and a single, shared legal counsel to negotiate and finalize the transaction. This helped to further streamline the final phases of the transaction. The new, simple structure allows the buyers to contract for relatively small pieces of the BayWa r.e. solar project, keep transaction costs low, and learn best practices from each other. The group hopes other buyers see this structure as a viable way to enter the large offsite renewable energy market, helping to accelerate corporate procurement of clean energy and expand renewables deployment in the U.S.
more at source: http://www.gapinc.com/content/gapinc/html/media/pressrelease/2019/med_pr_011719_VPPA.html