Drawdown Georgia Business Compact Convenes Compact Members to Evaluate Clean Electricity Demand and Encourage Collective Action in the State
The Compact’s Clean Energy Working Group fosters information sharing on clean electricity sourcing options in Georgia in order to effectively harness the power of collective action on climate change
Over the last year, the Drawdown Georgia Business Compact (Compact) has brought together key business leaders who are interested in assessing options for clean electricity procurement within Georgia to meet their decarbonization goals. The Clean Energy Working Group aims to identify opportunities for collective action and prioritize progress on clean energy initiatives for businesses in Georgia.
The group kicked off its activities with a discovery process that facilitated information-sharing and a survey assessing electric usage and current renewable energy procurement by participating Compact members (representing about one-quarter of all Compact members). In a high-level and preliminary aggregated range, their projected clean electricity needs were estimated to between 150 and 380 megawatts of energy, representing a substantial potential clean electricity buyer base.
“The need for clean electricity among Georgia businesses is significant,” says Michael Oxman, managing director of the Ray C. Anderson Center for Sustainable Business. “If just a sampling of our members reports this kind of energy required to power their companies and support their decarbonization goals, just imagine all of the potential clean electricity demand across the state that would be ideal to supply within Georgia.”
That’s why the Compact is bringing member companies together to explore the viability of scaling solutions. As an example of collective action in this space, Microsoft, Google, and Nucor are leveraging their collective buying power to open up more opportunities than any one company operating individually ever could.
“Seeing huge energy users like Microsoft, Google, and Nucor form a partnership shows the power of aggregating demand. You have companies that are really strong on their own, but together they can really drive the market forward. ”
At one of the working group meetings, representatives from Georgia Power, Electric Cities of Georgia (representing MEAG Power municipal utilities), and Green Power EMC spoke about current offerings to commercial and industrial customers. The utility representatives also answered business leaders’ questions about any electricity options that might support their company’s climate commitments.
As is the case in most regulated energy markets, there is not as much flexibility for new programming as in unregulated markets, but all of the utilities signaled an interest in finding creative solutions. Southern Company, Georgia Power’s parent company, recently demonstrated its commitment to collaborative approaches in signing a memorandum of understanding with the U.S. General Services Administration to develop carbon pollution-free electricity options for federal facilities across Alabama, Florida, and Georgia.
“Going back to the original purpose of the Compact, the whole idea here is collective impact. So in that spirit, from the electricity and renewable generation and supply of electricity standpoint, what can we do in the state of Georgia that would involve some sort of collective engagement? That’s what the Clean Energy Working Group is all about.”
Another option for providing clean energy is a Virtual Power Purchase Agreement (VPPA) where buyers sign a separate financial agreement to purchase renewable energy certificates (RECs) generated by a renewable generator over a specified contract term. Companies that have been unable to meet their clean energy needs locally in Georgia, for a variety of reasons, are pursuing these VPPA agreements for wind and solar projects in deregulated markets such as Texas or Oklahoma. However, there is an opportunity cost for Georgia.
“Purchasing clean electricity anywhere on the grid is positive and helps reduce global carbon emissions,” according to Eady. “But local purchase offers additional benefits in the communities that these companies operate in, including localized economic development and local environmental benefits.” In addition, Eady says keeping lost revenue represents a net financial gain for Georgia. “Since economic opportunity is at the heart of the Compact’s mission, we understand that staying in state for energy could really benefit the business community.”
Given the energy landscape in the state, another option under consideration by the Compact is to design a VPPA that facilitates collective impact here in Georgia, rather than deploying out of state.
Stay tuned for the latest developments on the Clean Energy Working Group and how the Compact is facilitating cooperative efforts for clean energy.
Are you a Georgia business leader committed to sustainable solutions? Join other leading companies in leveraging collective impact of the business community to achieve net-zero carbon emissions in the state. Visit Get Involved on the Compact’s website or email David Eady, director of industry engagement.