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Corporate procurement stabilizes renewable energy projects: CEBA
Yahoo Financeยท 2025-10-01 18:01
Core Insights - Corporate buyers have signed agreements for over 100 GW of clean energy from 2014 to 2024, representing 41% of all clean energy capacity added to the U.S. grid in the last decade [4] - The Clean Energy Buyers Association (CEBA) emphasizes that corporate energy procurement provides financial stability, which helps renewable energy projects secure financing and reduce risks [7] Group 1: Corporate Energy Procurement - CEBA represents over 400 energy customer companies and organizations, including major tech firms like Amazon, Microsoft, Google, Meta, and Oracle [4] - The report disputes recent studies questioning the impact of corporate energy procurement on the clean energy transition [4] Group 2: Financial Stability and Offtake Agreements - Offtake agreements lower debt interest rates and required debt service coverage ratios, facilitating project financing and construction [3] - Corporate buyers engage in virtual power purchase agreements, which help renewable energy projects remain financially viable during periods of low wholesale power prices [7] Group 3: Emission Accounting and Impact - Studies published in Joule and the Journal of Cleaner Production examine the validity of corporate emission accounting systems [5] - The Joule study indicates that different accounting approaches may allow companies to claim carbon-free electricity use, but do not necessarily reflect actual emission outcomes [6]