U.S. corporations increasingly look to manage their carbon footprints, and energy costs, by entering into clean energy power purchase agreements (PPAs). The contracts offer a tailwind to renewable energy developers but can challenge traditional utility-customer relationships. Ninety-five percent of the world’s largest 250 companies by revenue issue sustainability reports that disclose their environmental and social impact. Google, Microsoft and Wal-Mart have set 100% clean energy targets for parts of their businesses. As companies look to aggressively reduce their carbon footprint, some are taking the step of making direct investments in clean energy projects through contracts known as wind and solar PPAs, under which they buy electricity directly from clean energy generators.
Energy legal and regulatory expert Ken Kulak provides insights into corporate America’s efforts to clean up its electricity supply.