The escalating environmental concerns and the pressing urgency to combat climate change have sparked a growing demand for green energy. Unlike the past, where sustainability initiatives were often viewed as voluntary or green marketing ploys, today's corporate world faces substantial pressure from a multitude of sources.
In response to these pressures, many corporates are setting science-based targets and goals. Procuring renewable energy is often a key aspect of meeting these corporate goals.
RE100
To take RE100 as an example, it is a global initiative that unites influential businesses committed to using 100% renewable electricity. The initiative is led by The Climate Group in partnership with CDP. Companies that join RE100 pledge to source all their electricity from renewable sources by a specific target year. As of November 2023, there are more than 400 members.
RE100 members are united by their shared commitment to combating climate change and transitioning to a sustainable, low-carbon future. By committing to 100% renewable electricity, these companies aim to reduce their carbon footprint, support the growth of renewable energy markets, and inspire others to take similar actions.
Here are some examples of companies that have made commitments through RE100:
- Apple Inc.: Apple has committed to using 100% renewable energy across all its operations worldwide by 2030.
- Google: Google, a subsidiary of Alphabet Inc., announced that it reached 100% renewable energy for its global operations in 2017.
- Microsoft: Microsoft has pledged to power its data centres and offices with 100% renewable energy by 2025.
- Facebook: Facebook aims to support its global operations with 100% renewable energy, and it already achieved this goal in 2020.
- Unilever: Unilever has committed to using 100% renewable energy in its operations by 2030. The company is actively transitioning to clean energy sources to reduce its carbon emissions.
Exploring Renewable Energy Procurement Options in Malaysia
When it comes to acquiring renewable energy, different approaches are available, depending on the options provided by each country. In Malaysia, there are several approaches.
- On-Site Renewable Energy System - One of the most effective and enduring methods is to install an on-site renewable energy system, such as a Solar Power system, which is widely adopted in Malaysia and other equator countries due its strategic location for sunlight source. This option provides a sustainable energy source, whether through an outright purchase or a Solar Power Purchase Agreement (Solar PPA).
- Virtual Power Purchase Agreement (VPPA) - Alternatively, businesses can participate in the Corporate Green Power Program (CGPP), which operates as a Virtual Power Purchase Agreement (VPPA) and was launched in 2022. Under this program, corporations enter long-term contracts with renewable energy project owners to purchase bundled green energy. Project owners are then responsible for delivering Renewable Energy Certificates (RECs) to corporate off-takers. Due to the limited quota and overwhelming response, and due to several criteria, not all corporations can take advantage of this option.
- TNB Green Energy Tariff (GET) - Alternatively, companies can participate in TNB's Green Energy Tariff (GET) program for bundled RECs. TNB consumers pay GET Block subscription prices on top of the normal tariff for their monthly electricity consumption based on their RE needs. The RECs will be delivered after the end of the calendar year. (refer to this link for more details about the GET program)
- Unbundled RECs – Unbundled RECs empower companies to target their support toward specific projects, technologies, registry, or locations of their choice. This personalized approach provides flexibility in designing future contracts and adapting delivery timelines. In contrast to purchasing RECs from TNB, procuring unbundled RECs supports local individual renewable energy project owners and developers. By doing so, you actively contribute to the growth of the local renewable energy industry, affirming your commitment to sustainability.
Companies should thoroughly explore the options mentioned above to tailor their renewable energy procurement strategy according to their specific goals, requirements, and preferences. Each option presents a unique set of advantages and disadvantages, including factors such as pricing, contract duration, and supply security. By selecting the most suitable approach, companies can work toward achieving their renewable energy targets efficiently and effectively.
Saxon Renewables
Saxon Renewables offers a range of unbundled RECs options for corporate buyers, with a primary focus on meeting their requirements while maintaining the most cost-effective approach.
For many corporate buyers, especially in Malaysia, procuring RECs, whether bundled or unbundled, is a new endeavour. Saxon Renewables is here to provide support throughout your renewable energy procurement journey, from strategy development to execution.
There are numerous pathways available to help you achieve your renewable energy consumption objectives, and Saxon Renewables serves as your reliable sustainability partner for all your renewable energy needs.
Do not hesitate to reach out to us for further information and guidance on your sustainability journey.
