Weighing the Co-Benefits of Renewable Energy Power Purchase Agreements
Corporate, industrial, and institutional (C&I) buyers are choosing renewable energy power purchase agreements (PPAs) for three primary reasons. As they stand today, federal subsidies and technology improvements make both wind and solar PPAs financially attractive. PPAs also help companies manage risks associated with carbon, climate change, and a short position on energy. Finally, PPAs are a meaningful way for companies to achieve their environmental goals. However, these are not the only benefits of renewable PPAs. These other criteria—referred to as co-benefits —tell a compelling story about the value of renewable energy beyond cost and carbon mitigation. The many co-benefits of renewable energy power purchase agreements include: Reduced water consumption . Water use and conventional energy production are intimately linked. Water is used to obtain fossil fuels, to generate steam to power turbines, to extract pollutants from exhaust, and to cool product...