The wind blows and the sun shines on the world's great companies. More and more companies are opting to obtain the energy they need from renewable sources. Fortunately, Spanish electricity companies are entering the market to provide this energy: a clear example is Iberdrola, which will build a wind farm for Apple.
It will be located in Montague, Oregon, USA, with a capacity of 200 megawatts, and is expected to come into operation in 2020, following an investment of 300 million dollars. The power purchase agreement will run until 2040.
Today, the trend towards renewable energy shows no signs of slowing down. With more and more multinationals committing to reducing their carbon footprint, the clean energy sector is booming.
Iberdrola is not only working with Apple. In the United States, the Spanish company is developing important wind farms, such as one in North Carolina for Amazon. This project is about to be launched with the mission of boosting one of the world's largest e-commerce platforms. In addition, Iberdrola already has fully operational parks in Oregon and Washington State for the multinational clothing company. Nike sportswear.
Financial stability and profitability
The financial model behind these projects is becoming increasingly relevant. The most commonly used formulas today focus on create and adapt a renewable energy park for a specific client (ad hoc) or allocate an existing one to them.
This is done through bilateral agreements known as Power Purchase Agreements (PPAs), in which the park remains the property of the electricity company, but a fixed price for energy is guaranteed for a long period (generally between 15 and 25 years).
According to several industry executives, these contracts ensure financial stability for customers. On the other hand, these initiatives guarantee long-term profitability for energy providers, and the benefits of these agreements not only attract large technology companies, but also other industrial sectors.
RE100: The commitment of large companies
Large multinationals such as Apple, Facebook and Google are an important part of the RE100 group, an international initiative that brings together 344 companies committed to using 100% of their energy from renewable sources within a given time frame. These companies not only seek to meet government standards, but also understand that the development towards a renewable energy system is a long-term investment.
Apple, for example, generates much of its energy through solar panels. In 2022, Apple managed to operate its main facilities with 100% renewable energy, reinforcing its commitment to sustainability. Google, on the other hand, has invested more than $XNUMX billion in solar and wind energy projects around the world, and is one of the largest buyers of renewable energy in the world.
Examples in Spain: Bankia and CaixaBank
In Spain, although the number of companies integrated into RE100 is still limited, we find examples such as Bankia y CaixaBankBankia has awarded its green energy contract to Nexus EnergÃa and has begun installing solar photovoltaic systems at its headquarters in Valencia, with the aim of achieving greater energy efficiency.
CaixaBank, for its part, committed to consuming 100% renewable energy by 2023, and has achieved that by 2022, 99.01% of the energy consumed by its network of offices will come from renewable sources. At a global level, the entity also supports carbon offset projects in Peru, contributing to the fight against deforestation in the Amazon.
The role of administrations and sustainability in Spain
The growth of environmental concern among companies is due, in part, to the demands of the Public administrations, which increasingly value the use of renewable energy in their award criteria. According to the Association of Renewable Energy Producers (APPA), this development also generates savings for companies that are committed to sustainability.
However, in Spain, there is still a long way to go. While in the United States long-term agreements, such as Iberdrola's PPA with Apple, are common, in Spain long-term contracts are not so frequent. This is due to the Low liquidity in energy futures markets, which makes companies reluctant to sign contracts of more than two years.
Main protagonists
One of the great leaders in renewable energy is Google, which has been investing in solar and wind energy for over a decade. By 2022, Google achieved 100% of its annual energy consumption coming from renewable sources.
Another prominent example is Ikea, one of the founding members of RE100. Ikea aims to reach 100% renewable energy by 2025 and has already invested in more than 500 wind turbines and several hundred thousand solar panels for its stores and factories.
The automotive industry is also following this trend, with companies such as BMW committing to achieve two-thirds of its energy expenditure from renewable sources by 2025 and General Motors, which seeks to completely eliminate fossil fuels by 2050.
In a context where large companies continue to lead the race towards sustainability, the renewable energy sector is stronger than ever. With each step, the shift towards a greener economy seems more inevitable, and companies that have not yet made the leap are starting to see the benefits, not only for the environment, but also for their financial accounts.