August 26, 2016
As leading Member-Clients grapple with how to meet long-term global greenhouse gas emissions reduction targets or even become Net Zero portfolio-wide, renewable energy is emerging as an increasingly important piece of the puzzle. To meet that demand, the market today presents a range of established and emerging sourcing model options – in the US specifically, the availability, regulatory requirements, and financial implications of those market options vary substantially across, and even within, states.
Beyond the advisory services Sustainability Roundtable Inc. (SR Inc) has been doing for multiple years related to Renewable Energy Certificates (RECs) and onsite renewable energy, SR Inc is increasingly helping Member-Clients in 2016 across a full range of offsite solutions, with an eye towards four options that are of particular interest:
One such Member-Client that is weighing the merits of each of these options is San Francisco-based biotech company Genentech. Genentech has established 2020 goals to reduce absolute CO2 emissions by 30% from onsite energy use and by 10% from transportation sources, using 2010 baselines. The company also aims to procure 20% of its energy – including for fleet, and air travel – from sustainable sources by 2020.
The company currently has a 4 MW solar photovoltaic (PV) installation onsite at its Oceanside campus and is in the permitting phase for a 7 MW onsite ground-mount installation for its Vacaville site. It is also in the design phase for a 6 MW onsite PV installation to produce power for its South San Francisco headquarters. However, the limitations of onsite necessitate Genentech to seek alternative options to meet its high energy demand.
One particular area of interest for Member-Clients like Genentech are Community Choice Energy Aggregation programs, which are legal in a small but growing number of states, including California. Jerry Meek is leading Genentech’s effort to procure additional renewable energy offsite, and the company will be transferring PG&E bundled service to Peninsula Clean Energy’s (PCE) 50% renewable service over the next 12 months.
Peninsula Clean Energy (PCE) is San Mateo County’s official electricity provider. Under its Community Choice Energy program, PCE will manage power generation for its customers, while the Investor-Owned Utility (in this case, PG&E) maintains power distribution and provides connection and billing. PCE offers two product options to commercial customers: an ECOplus option, which provides 50% renewable electricity to customers, and an ECO100 option, which is 100% renewable. PCE will begin automatically transferring all residential and small commercial customers to the ECOplus service this fall and plans to transfer all PG&E customers by the end of 2017. While PCE is not yet online, programs such as MCE Clean Energy and Sonoma Clean Power already exist in California.
SR Inc is energized by the continued growth and falling costs of the renewable energy market and also by Member-Clients continued enthusiasm to learn about and participate in the market in innovate and cost-positive ways nationwide and globally. We look forward to our next Symposium in New York, NY on September 22nd to continue our research of management best practices in this inflecting field and to zero in on reporting the successes (and inevitable challenges) of renewable energy strategies both internally and externally, with an eye to how those strategies integrate with energy sourcing and corporate strategies as a whole. We hope Member-Clients will feel welcome to join us in New York for this Symposium or in Washington DC this December 8th for a “Summit for Sustainable Operations V” to learn from and share best practices with experts in the field working to move business towards greater sustainability.
Select Relevant SBER Executive Guidance & Tools:
SBER Presentations
SBER Member Advisories
SBER Member Briefings
Jim Boyle is CEO & Chairman of Sustainability Roundtable, Inc. For more than seven years, Jim has led full-time teams of diverse experts assisting world-leading corporations, real estate owners, and federal agencies in their move to greater sustainability. He has led in developing SR Inc’s confidential, industry specific, annual management assessment and recommendation process for more sustainable operations and real estate that is compatible with major public standards globally. Further, he has directed the development of hundreds of pieces of SR Inc original Executive Guidance. Before founding SR Inc, Mr. Boyle advised fast growth technology firms, private equity firms, and institutional investors as an adviser on real estate strategy and implementation, and before that, as a large law firm attorney assisting corporate and investment clients on complex real estate and environmental compliance-related issues. Jim is a graduate of Middlebury College and Boston College Law School, who early in his career served as a federal law clerk and as an aide to John F. Kerry in the U. S. Senate.
Senior Sustainability Analyst Kelsey Wallace supports research, development and implementation of enterprise sustainability strategies for companies that recognize the business imperative of more sustainable operations in the face of climate change and an increasingly resource-constrained world. Prior to joining Sustainability Roundtable, Inc., Kelsey worked for an environmental/engineering consulting firm where she supported clients including the U.S. Environmental Protection Agency and the U.S. Green Buildings Council to promote sustainable buildings, clean energy, and safe drinking water. Kelsey also devoted a year to national service with the AmeriCorps National Civilian Community Corps, where she worked on team-based conservation and community development projects throughout the Southwest United States. Kelsey has her B.A. in Environmental Studies from Connecticut College.
