Renewable energy procurement is trending, and its demand is increasing daily. The main reasons behind this approach are the need for a sustainable environment, increasing energy demand, rising power costs, etc. 

The population is increasing, and so is the consumption of energy. It’s high time to switch to renewable energy because you don’t want to exhaust the limited resources we have. 

Rather, you can switch to renewable power sources to reduce power costs and also to save the environment. Let’s find out more about renewable energy procurement trends and strategies.  

What is Renewable Energy Procurement?

Renewable Energy Procurement is the procurement or sourcing process of renewable energy by different sectors like business organizations, corporations, or industrial sectors to cope with their electricity needs. 

Electricity can be generated from solar, wind, geothermal, hydro, and biomass. The procurement of renewable energy helps in sourcing this energy to lower the use of non-renewable energy sources, to lower environmental risks, and promote the sustainability of the environment. 

Trends of Renewable Energy Procurement

If you closely observe the increasing demand and supply of renewable energy, you will see that the demand is always on the higher side. People are more prone to this sector. There are some trends associated with the procurement of Renewable Energy. 

Increasing Corporate and  Business Demands

As per recent trends, business and corporate renewable energy procurements are increasing rapidly. This is because so many initiatives are taken, like RE100, etc., which ensure to meet the huge requirement of renewable energy in these sectors is met. 

Thanks to the different strategies involved, now it is possible to source renewable energy from the same grid and region where the consumption is happening.

Emission Control

Another trend behind the renewable energy procurement is to control the Carbon Emissions associated with the use of fossil fuels to ensure a sustainable environment. To control the emission, green energy is being procured from such regions and grids where the emission is higher. As a result, when these regions produce renewable energy, this will automatically lower the carbon emissions. The trend of greater consciousness towards the environment is the reason behind green energy procurement. 

Incentives and Tax Credits

People are now more prone to renewable power procurement because of the huge financial incentives and tax credits offered. For clean energy development, environmental causes, the government has launched several policies like the Inflation Reduction Act, etc., offering huge financial benefits to the organizations producing green energy. 

That’s why huge investments are shifting towards this industry, promoting a sustainable energy procurement process. 

Renewable Energy Community

Establishing a renewable energy plant involves higher investments, a larger area, and huge infrastructure maintenance. Thanks to the renewable energy community, now different businesses can join them and procure green energy without participating in the huge infrastructure or establishment costs of green energy plants. 

Energy Storage Capacity Expansion

To store the high volume of green energy, huge storage devices are required. Earlier, in the absence of such storage, green energy production was limited. 

After years of research and development, modern science now has a storage breakthrough for high-volume renewable power, which can also be expanded depending on the production of green energy.

Strategies of Renewable Energy Procurement

Though an increasing trend of Renewable Energy Procurement is there, without a proper strategy, it is impossible to follow this trend. Most of the organizations, including the business and corporate sectors, use the following strategies to ensure the safest green energy procurement.

i) On-site Power Generation

The best strategy you can follow to procure green energy is to establish renewable energy plants at the site of your business or industry. This helps in direct access to power without any obstacles, full control over the procurement process, reduced cost of operations, and helps in getting government incentives, etc. 

ii) Power Purchase Agreements

There are different types of Power Purchase Agreements available through which you can participate in Renewable Energy Procurement. 

There are PPAs through which you can sign a 10-20-year agreement with a producer of renewable power at a predetermined rate. 

And another one is VPPA, where you can buy a limited quality of renewable power from a developer and get a REC (Renewable Energy Certificate). 

iii) Green Power Programs

You can purchase green electricity from any utility at a bare minimum price, while the utility will produce the power for you. Companies that don’t have a big infrastructure may go with this kind of strategy without increasing their price burden.

iv) Renewable Energy Certificates

You can purchase a renewable energy certificate, which can help you to procure the necessary amount of renewable energy whenever required. You can claim  1 MWh of green energy with this certificate. 

v) Involvement of the Energy Procurement Industry

Direct ownership of onsite plants or infrastructure, or even purchase of agreements like PPAs and VPPA’s involves costs, infrastructure, and high maintenance. You can take help from some experts who belong to the energy procurement industry. 

They will help you to procure the right sources at the right time. You won’t feel any cost burden or quality issues as well. We at ReflowX ensure the safest and quickest procurement of green energy. We promote sustainable business procurement by reducing carbon waste and lowering costs. 

vi) Renewable Energy Community

You can also join any Renewable Energy Community where you can participate in different local projects associated with the production of renewable energy. 

Conclusion 

Though there are different strategies available to support the increasing trend of renewable energy procurements, most of them involve huge costs, upfront installation scenarios, supplier sourcing problems, quality control barriers, etc. 

The most effective way to join the trend of green energy procurement is to hire experts from the energy procurement industry. You don’t need to worry about unnecessary obstacles, and you get the maximum benefits. 

At ReflowX, we offer our customers sustainable procurement with complete transparency and without compromising on quality. We are associated with ACCEL to ensure sustainable procurement in the Renewable Energy sector. So, if you are still not using renewable energy sources because of the difficult procurement process, you can join the trend.