Fifth Third Bancorp is the first Fortune 500 company and the first bank to sign a PPP that, with a single project, reaches 100% UA. With this agreement, Fifth Third also became the first publicly traded company to commit to buying 100 percent. In fact, today, more than 210 committed organizations have signed a contract with RE100, a global trade initiative that has committed to 100% renewable energy, and more than 750 companies that are taking action on core science targets, a strategy that clearly defines how companies should reduce their greenhouse gas emissions and how fast. And that list is growing by the day. Corporate building managers need to broaden the scope of their energy management programs from a laser focus to energy efficiency. They must constantly explore new opportunities, particularly in light of the lower costs of local production and energy storage. To learn more about the evolution of business energy management opportunities, see our report: Best Practices For Energy Management In An Era Of Smart Buildings. What does the agreement mean for the rest of the energy services market? Schneider Electric and Huck Capital confirm that the interactions between Les S-Grid will be the next mega-trend that shapes the energy management of companies. With lower local generation and electricity storage costs, a small but rapidly growing number of commercial businesses will update their energy programs to allow for more network interactions.
They turn their buildings into “virtual power plants” that participate in the electricity market by buying and selling energy or participating in demand response (DR) programs. One of the pioneers of this approach is the Sello shopping centre in Finland, which generates 650,000 euros ($770,000) in annual revenue through participation in Fingrid DR programs, supported by Siemens Smart Infrastructure services. Australian manufacturer BlueScope Steel has announced a seven-year PPP to extract 66% of ESCO Pacific`s 133 MW of finley Solar Farm energy. This represents 20% of All Australian electricity purchases from BlueScope. In August 2020, Schneider Electric announced that it was working with investor Huck Capital to create a new company called “GreenStruxure,” which will provide energy service offerings for commercial buildings and industrial facilities. GreenStruxure will finance the installation of small solar power, storage and back-up micro-grids, with end-users paying for them through long-term mooring contracts (PPPs). Schneider Electric will oversee commissioning and day-to-day operations through its EcoStruxure software monitoring platform. The new proposal is aimed at operators of medium-to-large commercial buildings and local production systems of up to 5 MW. Ball Corporation has signed a 15-year virtual energy (VPPA) contract for 161 MW of the Frontier Windpower II project in Kay County, Okla.
The total mobilization for the construction of Frontier II will take place this summer and the wind project will be fully operational by December 2020. AAEs play a key role in financing and developing electrical projects. Electricity is purchased by the purchaser at a pre-agreed unit price structure for a given period, which provides some cash flow to the project. One of the most effective ways for companies to ensure they enter into the right clean energy deal is to work with a trusted consultant. Many large companies decide to meet their renewable energy targets through an Achanion Contract (AAE). Schneider Electric and Huck Capital are taking advantage of the emerging corporate demand for PPA-funded solar projects. In these agreements, companies agree to source electricity from an energy services company as a means of financing the project, while protecting themselves against rising electricity prices and volatility.