Energy Report 2019 - Preview - Brought to you by: BayWa re
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Energy Report
2019 - Preview
Brought to you by: Report compiled by:
Can corporations truly 89 % 92 %
become the driving force of agree corporations have
leading role to play
are sourcing renewables to
reduce energy costs
the renewable transition? 89 percent of companies across all surveyed
countries, company sizes and industries
universally agree on the leading role they
In deciding whether to invest in renewable
energy, costs are the main factor. The most
frequently mentioned reason for corporate
have in driving the renewable energy
In October this year, the Intergovernmental Panel on Climate Are corporations convinced? Do they recognise their transition. sourcing of renewable energy was the
reduction of energy costs (92 percent),
Change (IPCC) released its most stark warning yet on the fundamental role in driving the renewable transition?
while the main barriers for investing in
global impact of failing to limit global warming to 1.5°C. What progress has been made and what factors are holding renewable energy were the long time for
corporations back? Do they see an opportunity or a challenge? payback (44 percent) and high investment
At the same time, the renewable energy transition in Europe costs (38 percent) – investment costs were
is at a crossroads as it moves from being subsidy driven, The latest BayWa r.e. Energy Report provides answers to these seen as a barrier by 47 percent in Poland
to market driven. A world where corporations would then, questions by analysing the views of corporations across six and 46 percent in the UK, while in Germany
this dropped to 30 percent.
naturally, take up more of the market. However, corporates key European countries on how they view renewable energy.
must first be convinced of the benefits. With the commercial The full report will be released early in 2019 and is the first,
and industrial sector accounting for two-thirds of the world’s systematic, quantitative opinion survey that has been carried
end-of-use electricity , their adoption of renewable energy is
1
out among 1,200 decision-makers in medium-sized and
now fundamental to the transition. large companies in the UK, Germany, Italy, Spain, France and 70 percent of companies in Germany, the
Poland. This preview report provides first insights into some UK and France felt satisfied with the work of
their governments and perceived the legal
of the initial findings.
framework for the use of renewable energy
as favourable. But the picture becomes less
positive when looking closer.
The evolving role of European corporations
70 %
The use of renewables in the EU increased significantly However, to reach the next level and truly drive
in recent years. Their share in energy consumption the decarbonisation of our economy, companies see legal frameworks
doubled from around 8.5 percent in 2004 to 17 percent must take an even more active role by leading the as favourable
in 2016.2 An important factor in this trend has been the investment in renewable energy and increasingly
political will in Europe to set and pursue important EU replacing subsidy driven schemes with market-based
55 % 75 %
climate targets. contracts and solutions.
As a result, most of this past growth was driven To support this evolution, the RE100 network was
by politically determined subsidy schemes, which launched at Climate Week NYC 2014. The global
provided investment opportunities for financial initiative aims to accelerate the transformation of the
investors and, to a lesser extent, the final consumer. global energy market and aid the transition to a low have set targets are frustrated by bureaucracy
Only in more recent years has the energy consuming carbon economy. Just over 150 RE100 companies
industry contributed a small, but growing, share to the have committed to source 100 percent of their global More than half of the surveyed companies (55 In Poland, Italy and Spain, 40 percent of
shift to cleaner power by directly obtaining increasing electricity from renewable sources by a specified year. percent) have targets regarding the reduction of respondents were unsatisfied with the work
amounts of their energy from renewable sources. greenhouse gas emissions, energy efficiency or of their governments and legal framework.
But this is just the start and there is much work the use of renewable energy. The main objective of
In some countries, renewables have already become ahead if the worst predictions of the IPCC are to be Moreover, 75 percent of all companies
the surveyed companies was to increase the use of across all countries felt bureaucracy is
an attractive form of power supply or investment in avoided. It is at this crossroads for the renewable
renewable energy (66 percent). While companies hindering additional investments. At
self-consumption for corporations, making it possible energy transition that the Energy Report surveys the
to reduce energy costs, hedge against the risk of corporations across key European markets who are in Germany, the UK and France mainly focus on 78 percent, frustration was highest for
increasing energy prices and meet sustainability central to its success. greenhouse gas emission targets, companies in companies in Spain and the UK, while
objectives. Poland, Italy and Spain aim to increase the use of Germany and France recorded 73 percent,
renewable energy. and Poland and Italy ranged in between.
1
http://www.irena.org/newsroom/pressreleases/2018/May/Corpora-
te-Sourcing-of-Renewables-Growing-Taking-Place-in-75-Countries
2
Eurostat: https://ec.europa.eu/eurostat/statisticsexplained/index.php?tit-
le=Renewable_energy_statistics/de#Wichtigste_statistische_Ergebnisse
1 2
Reaction to initial results
Corporations feel responsible for driving the renewable respectively, are quite surprising. Either the significant price drops
transition in recent years have not yet been fully reflected in the solutions
Encouragingly, the first results of the Energy Report 2019 provide offered, or the investment hurdles by corporations are still too
a relatively consistent picture of all surveyed countries, company high for energy infrastructure. In such cases, leasing and Power
sizes and industries in Europe. A clear majority of decision-makers Purchase Agreement (PPA) structures3 should be able to overcome
agree on the important role corporations have in driving the energy the barriers but are not common enough yet.
transition, with approval ratings ranging from 95 percent in France Initial results of the BayWa r.e. Energy Report 2019 highlight both the
to 83 percent in Poland. For large companies, and for those in the wholesale and retail desire from corporations to source more renewables, and the barriers
sector, the long-term payback period was a particular issue, for 54
to realising the huge potential that exists.
Companies are increasingly aware of the major advantages that and 52 percent of the respondents respectively. For these parts of
renewables offer, such as long-term lower energy costs. This result the market, energy suppliers will need to look more closely and
is crucial, as for a long time corporations and industry associations determine whether more work is required to better convey the Many corporations see the benefits of renewables but are held back
were concerned about the costs of the energy transition, sceptical range of renewable energy sourcing options that are available or if by bureaucracy or barriers relating to investment costs and payback.
of the benefits renewables offer, and feared a risk to their supply new solutions are needed. As an industry, we must ensure that a range of renewable supply
security. The survey shows that the attitude of corporations has options, from PPAs to own installations, are available and meet the
changed in this regard thanks to the dramatic decrease in green The market already offers a wide range of onsite and offsite sourcing needs of corporations. We must also work with governments to help
energy costs and the increase in public awareness regarding climate options together with different financing and investment models.
pave the way for an improved regulatory framework.
change. While prices for renewable energy systems continue to fall. The same
is true for Guarantees of Origin4, which are currently experiencing Matthias Taft, Member of the Board with responsibility
At the same time, the findings also highlight that there is huge a significant increase in value. If the corporate consumer agrees
for the energy business, BayWa AG
potential for corporations to enter the next phase of the energy to a PPA with a renewable energy generator, the transfer of the
transition if key barriers and obstacles preventing further certificates is mostly part of the contract, and the certificates do not
investment and adoption of renewables can be overcome. need to be purchased separately.
At Microsoft, we believe in a future powered by clean energy. The
More potential that energy providers can unlock Renewable energy providers thus need to be prepared to enter into initial results of the BayWa r.e. Energy Report highlight the willingness
On the part of energy providers, there is more homework to be done. detailed discussions with corporations in order to better understand from corporations to source renewables.
From their perspective, the results regarding the long amortization their specific needs and internal requirements, and to then propose
time and high investment costs, which were perceived as barriers the optimum solution.
By investing in new renewable projects, creating new deal structures
to new investments by 44 and 38 percent of the respondents
to open up markets, and introducing new technology solutions to
storage and grid management, we see it as our role to lead by example
and show how corporations can drive the renewable transition.
Vanessa Miler-Fels, Renewable Energy Strategist, Energy &
Sustainability, Microsoft Cloud Operations & Innovation
Growth in Corporate Renewable PPAs observed over the past years
is the result of collaboration across the renewable supply chain.
Corporate buyers, developers and lenders have come together
outside of deal negotiations to find common positions within WBCSD’s
Forum. This report shows when governments are providing a stable
and favorable legal framework, corporate demand will drive further
renewable deployment in Europe.
Mariana Heinrich, Manager – Climate & Energy, World Business
Council for Sustainable Development (WBCSD)
3
A Power Purchase Agreement is a long-term contract under which the developer sells the electricity to a off-taker for a fixed price.
4
A Guarantee of Origin (GO or GoO) guarantees that one MWh of electricity has been produced from renewable energy sources. It is a form of
tracking defined in article 15 of the European Directive 2009/28/EC.[1]
3 4
Which particular targets does your Reduction of greenhouse gas
emissions
I feel the government is providing a Agree
company have? Raise the use of renewable favourable framework to corporates Disagree
energy
who want to use renewable energy.
Raise energy efficiency
76 77 74 77
74 73
68 68 66 70
64 62 63
61 60 61 60 60
58
52 54 53 54
44
39 40 40
26
23 23
UK GER FR IT ESP POL UK GER FR IT ESP POL
Bureaucracy and complex regulations are Agree Which are/have been the most limiting Investment costs too high/limited
investment budget
currently hindering additional investment Disagree
decision criteria for investing in renewable Payback time too long
in renewable energy for my company. energy for your company?*
Unpredictable supply
security/risk of failure
78 79
73 73 74 74 49
46 47
45 45
42 43
39 39
34
32
30
27
25 25
22
20 19
27 27 26 26
22 21
UK GER FR IT ESP POL UK GER FR IT ESP POL
5 *
top three responses shown 6Reaction to initial results
Corporate sourcing is a matter for politics
However, while the industry has work to do, so do European and
national governments. While most respondents were satisfied with
The growing momentum and impact of corporations working to scale
the broad policy framework in their countries, many were frustrated
renewable energy is clear. Yet despite the progress made to date,
by strict and complex bureaucratic regulations that they felt were
preventing further investment in renewables. more must be done to maximise Europe’s full potential for corporate
investment in new sources of renewable energy and associated
While broad policy may be favourable, it is in the detail where environmental and economic benefits.
frustration is being caused and the greatest risk exists for complexity
and bureaucracy to mean potential goes unrealised. The RE-Source Platform aims to increase the number of active
corporates from 100 to 100,000. The massive potential can be realised
Dissatisfaction was highest in Spain, Italy and Poland, but was
by increased awareness of the opportunity and removal of policy and
clearly evident across all countries surveyed.
market barriers that constrain the growth of renewables in many
markets in Europe.
Bruce Douglas, Coordinator, RE-Source Platform / Deputy CEO,
SolarPower Europe
The energy transition becomes a success when business and
politics work together
The primary objective of governments should therefore be to,
Individuals and companies want to take climate action by investing
in renewable energy generation and sourcing renewable energy.
i
firstly, reduce bureaucracy and red tape to create additional
incentives for investments. And secondly, to establish a sustainable A simple and inclusive legal framework is needed to accelerate the
legal and regulatory basis for business models, such as PPAs and transition to an affordable and clean energy market. We need ‘the
self-consumption, in countries where this is not the case yet. many’ people to join the movement, after all climate action starts at
The full results of the Energy Report
home!
will be available in early 2019. Concurrently, the renewable energy industry needs to be more
‘customer-focused’. It must ensure it offers a broader range of Karol Gobczynski, Climate & Energy Manager, IKEA Group
tailored solutions that meet the specific needs of corporations, from
To register for a copy, visit
different markets and of different sizes. Together with governments,
www.baywa-re.com/energy-report the industry must then help pave the way for improved policy and
regulations, and work hard to ensure all these messages get through
#EnergyReport19 #RESource2018 to decision-makers and influencers within corporations. This report shows European corporate buyers are increasingly aware
of the strengthening business case for renewables.
Corporations then have their own challenge to bring all internal
stakeholders together so that a decision for more complex
For more information please contact:
renewable products and options can be made.
By pioneering innovative approaches and helping to shape regulatory
BayWa r.e. renewable energy GmbH frameworks, RE100 members have been instrumental in making
Mark Cooper
The will and the desire from corporations is there, as is evident corporate renewable energy use more mainstream. We expect more
Head of Global Communications
from the 55 percent of surveyed companies that have set their own and more companies to step up their ambition and work with policy
Tel: +49 89 383932 3611
targets regarding emissions, energy efficiency or use of renewables. makers, regulators and energy suppliers to drastically accelerate
E-Mail: Mark.Cooper@baywa-re.com
But if those targets are to be realised, and the 45 percent who are
clean power deployment.
yet to set any targets are to be convinced, there is still much work
ahead. Sam Kimmins, Head of RE100, The Climate Group
7 8About Imprint
The BayWa r.e. Energy Report series Published by
BayWa r.e. renewable energy GmbH
Programming and Sampling
Lightspeed GMI
The Energy Report 2019 surveyed a total of 1,200 companies with The Energy Report series was launched in 2015 by BayWa r.e. in Arabellastraße 4 Anita Duhr
more than 500 employees based in the UK, Germany, Italy, Spain, order to find out more about European consumer’s support for the 81925 München Landsberger Strasse 288
France and Poland. The study was carried out amongst corporate energy transition. The first edition focused on private households Tel: +49 89 383932 0 80687 München
decision-makers operating in one of the following areas: energy in Germany and provided a comprehensive picture on the attitudes Fax: +49 89 383932 32 Tel: +49 89 5600 9472
providers, factory or company equipment, property and buildings, of Germans towards the energy transition. The second edition, E-Mail: info@baywa-re.com E-Mail: Anita.Duhr@lightspeedresearch.com
technical equipment and machinery or raw and fuel materials. published in 2017, focused on German companies: a total of 1,000
decision-makers from small, medium-sized and large companies Published on behalf of Consulting and Editing
The Energy Report 2019 is the first, systematic, quantitative opinion were interviewed. The survey provided meaningful insights into RE-Source Platform LoeschHundLiepold Kommunikation GmbH
survey providing meaningful and comparable insights into the the energy supply of German companies, the prevailing attitude E-Mail: info@resource-platform.eu Helena Rauch
attitudes of European medium-sized and large companies towards of companies towards German energy policy and the question on Tegernseer Platz 7 / Eingang Deisenhofener Str. 1
the energy transition, current energy policy issues, sustainability whether they are willing to invest in green energy. Find out more at: Responsible according to the press law 81541 München
targets and plans to source renewable energy. www.baywa-re.com/energy-report Klaus-Stephan Meyer Tel: +49 89 7201 8723
Director of Marketing and Communication Fax: +49 89 7201 8720
E-Mail: Stephan.Meyer@baywa-re.com E-Mail: h.rauch@lhlk.de
The RE-Source Platform Registered Office
Munich, Germany
Design & Layout
GESSULAT/GESSULAT GmbH & CO. KG
The RE-Source Platform is a European alliance of stakeholders The multi-stakeholder platform brings together the interests of Munich Registry Court, HRB 160344 Infanteriestraße 19 Gebäude 3
representing clean energy buyers and suppliers for corporate both buyers and sellers, to unlock the potential for a new and Ust-IDNr.: DE266587063 80797 München
renewable energy sourcing. This platform pools resources and promising financing stream for renewable energy. Learn more at Tel: +49 89 716 771 823
coordinates activities to promote a better framework for corporate www.resource-platform.eu Management Board
renewable energy sourcing at EU and national level. Matthias Taft (CEO), Günter Haug, Harald WilbertYou can also read
