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The Green Power Market Development Group team visiting the 500 kW rooftop solar photovoltaic system at Johnson & Johnson's Janssen facility in Titusville, NJ.
The Green Power Market Development Group is a collaboration of 12 leading corporations and the World Resources Institute dedicated to building corporate markets for green power. Our goal is to develop corporate markets for 1000 MW of new, cost competitive green power by 2010.
In the late 1990s General Motors, British Petroleum, Monsanto and the World Resources Institute undertook the Safe Climate, Sound Business Initiative (SCSB) to overcome the apparent conflict between energy needs and the desire to reduce greenhouse gas emissions (80% of which is energy derived from fossils fuels, the principle source of anthropogenic greenhouse gas emissions*). After reviewing three long-term energy scenarios, the partnership of fossil fuel intensive, industrial corporations agreed that "it will be difficult to reduce CO2 emissions without sharply increasing reliance on renewable energy sources."** An action agenda was developed based on the findings of the SCSB and the Green Power Market Development Group was initiated as one of the agenda items.
80% of all anthropogenic greenhouse gas emissions result from the combustion of fossil fuels, and the U.S. emits over 20% of all global greenhouse gas. Corporations in the commercial and industrial sector account for 54% of all U.S. energy consumption and 48% of U.S. direct CO2 emissions.*** The size and concentration of corporate energy requirements and complementary 24x7 demand of energy makes many industrial and commercial corporations ideal targets for a wide variety of green power opportunities.
Unique from other voluntary initiatives, WRI researchers work closely with corporate energy professionals to build the business case for green power. The Group is working to transform energy markets and develop strategies to enable corporate buyers to diversify their energy portfolios with green power and thereby help address climate change.
The Group seeks to:
Develop strategies to reduce green power costs by using innovative purchasing options, by reducing transaction costs for companies, and by gaining economies of scale through working as a group. Reduce market barriers faced by green power suppliers and buyers by providing independent information to potential customers. Define the business case for buying green energy products by recognizing the value of renewable energy to diversify energy portfolios.
Between January 2001 and December 2005, Green Power Market Development Group members implemented 360 megawatts (MW) of new green power projects and purchases. These purchases include renewable energy certificates (RECs), hydrogen fuel cells, wind power, electricity from other renewables such as biomass and geothermal resources, and the direct use of landfill gas for thermal energy.
Leveraging the strategies and lessons learned from the Group, WRI also has assisted several other companies and institutions in pursuing and executing renewable energy projects and purchases. These "Green Power Affiliates" include Whole Foods and the World Bank.
WRI's "Green Power Affiliates" have completed an additional 215 MW of renewable energy purchases over the past several years, including the nation's largest wind renewable energy certificate purchase by a corporation, Whole Foods, at the time.
Combined, the Group and Affiliates have completed 575 MW of renewable energy projects and purchases by year end 2005.
The majority of these purchases have been from wind power facilities.
These projects will avoid 2.364 billion pounds (lbs.) of carbon dioxide (CO2) emissions annually.
* BP Statistical Review of World Energy, June 1998.
** Faeth, Paul, et al., "Building a Safe Climate, Sound Business Future," World Resources Institute, 1998, p.15.
*** Energy Information Administration (EIA), Table 2.1a Energy Consumption by Sector, 1949-2000 (based on Y1999 data) and Table 12.2, Carbon Dioxide Emissions From Energy Consumption by Sector, 1980-1999 (based on Y1999 data), EIA Annual Energy Review 2000, http://www.eia.doe.gov/.
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