March 2, 2018 Read More →

Corporate Plans for Renewable Energy Stand to Create a $194 Billion Investment Market

Bloomberg News:

For 125 of the world’s major companies to make good on their pledges to source power exclusively from renewable energy, they’ll have to spend $94 billion.

That’s enough to add 87 gigawatts of new wind and solar power worldwide, comparable to the U.K.’s existing power fleet, according to a report Thursday by Bloomberg New Energy Finance.

Companies from 20 countries have joined the RE100 campaign since it was launched in 2014, committing to be fully renewable. Most have set a target of 2030 or earlier. Many are not there yet, and their demand may spur construction of new wind and solar farms around the world.

“The clean-energy demands of these corporations will catalyze billions of dollars in clean-energy investment,” Kyle Harrison, a New York-based analyst at BNEF, said in an interview. “Corporations can have a real say in power-market design.”

Visa Inc. and Japan’s Daiwa House Industry Co. signed on for the RE100 on Wednesday. They join existing members that include furniture retailer Ikea, brewer Anheuser-Busch InBev SA, General Motors Co. and Johnson & Johnson. Bloomberg LP is also an RE100 member.

Corporations’ growing need for clean energy means that there will be a market for wind and solar power, even in markets with sluggish electricity demand and in countries that are cutting subsidies. They’ve already signed more than 14 gigawatts of renewable-power contracts since 2015, including a record 5.4 gigawatts last year, according to BNEF.

More: It’ll Take $94 Billion for These Companies to Go 100% Green

 

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