Moving into 2024 with Clean Energy

PowerGreen’s latest newsletter provides crucial insights into why 2023 was a pivotal year for the solar energy industry. Our newsletter emphasises how we are seeing an increasing upward trend for businesses across the UK to implement carbon reduction targets for 2024. This year will likely introduce a period where corporates will be shaped by clean energy procurement.

To understand how the PowerGreen team can support your business to optimise its renewable energy credentials and secure low-cost energy stability, get in touch with our dedicated PPA advisory team.

Financial Incentives for Corporate ESG Strategies

2024 is expected to mark a steep change for renewable power growth in the commercial sector over the next five years, as the UK’s top companies are increasingly including ESG corporate goals in executive pay plans.

The implementation of environmental, social, and governance (ESG) reporting in UK executive payment plans has increased to 89%, up from 81% (WTW). ESG-linked targets are present in both short-term and long-term payment schemes across commercial companies. These incentive plans are driving the momentum for corporates to lock-in sustainability strategies; therefore, PowerGreen emphasises the increasing financial benefits that solar energy procurement delivers.

Source: ICAEW Insights | ICAEW

What Have REGOs Got to do With It?

Last week the PowerGreen Team attended the Zeigo Power Webinar and engaged with solar industry leaders, learning about which trends are driving corporate Power Purchase Agreement procurement and subsequent pricing.

These were our takeaways:

• Corporates demand for PPAs is growing, as long-term energy price stability is desirable.
• As governments strengthen the requirement for businesses to provide traceable decarbonisation methods, the pressure to secure Renewable Energy Guarantees of Origin (REGOs) has increased significantly.
• PPAs are seen to play a crucial role in energy procurement diversification, serving as an advantageous strategy to lock-in low-cost clean energy with no CapEx expenditure.

PowerGreen Channel Partnership Announcement

PowerGreen is excited to announce our channel partnership with Zeigo, a digital marketplace by Schneider Electric that provides sustainability software to accelerate net zero. We are looking forward to serving as a PPA solar solutions provider on the Zeigo Network.

Solar News Outside of PowerGreen

The International Energy Agency’s Outlook Report

Global annual renewable capacity additions increased by almost 50% to nearly 510 gigawatts (GW) in 2023, the fastest growth rate in the past two decades. Globally, solar PV alone accounted for 75% of renewable capacity additions worldwide.

• In 2023, spot prices for solar PV modules declined by almost 50% year-on-year, with manufacturing capacity reaching three times 2021 levels.
• In 2023, “an estimated 96% of newly installed solar PV capacity had lower generation costs than new coal and natural gas plants”.
• In 2025, renewables will surpass coal-fired electricity generation.

At the COP28 climate change conference in Dubai, more than 130 national
governments including the European Union agreed to work together to triple the world’s installed renewable energy capacity to at least 11,000 GW by 2030.

Source: IEA. International Energy Agency | www.iea.org