The companies currently committed to the RE100 campaign will need to procure an estimated 172 TWh (172,000 GWh) of additional clean energy generation by 2030 to meet their renewable energy targets, finds a new report by Bloomberg New Energy Finance (BNEF) entitled RE100 Signatories to Spur $94 billion Investment Opportunity.
Key points from the report include:
- The current group of RE100 signatories cumulatively consumed 163 TWh of electricity in 2016, which is greater than the electricity consumption of Sweden or Poland.
- BNEF forecasts that the electricity demand of this current group of signatories will grow to 223 TWh by 2030, based on historical electricity demand growth for each company.
- Based on individual company commitments, BNEF estimates this will leave a clean energy shortfall of 172 TWh by 2030 (meaning these RE100 companies will need to purchase 172 TWh of clean energy to meet their targets).
- There are a variety of ways a company can meet its clean energy targets (73% of the clean energy purchases from RE100 companies as of 2016 came from the purchasing of unbundled certificates or utility contracts that involve the purchasing of certificates).
- If the RE100 companies were to transition to meeting their targets entirely through PPAs, it could catalyze the development of 87 GW of new solar and wind build globally by 2030 –a $94 billion investment opportunity. However, more likely is that the companies will enlist a variety of different mechanisms to meet this 172 TWh shortfall, including PPAs, certificates, on-site generation and utility contracts.