NREL: IT Industry’s Renewable Energy Procurement Will Continue To Grow

Posted by NAW Staff on August 20, 2015 No Comments
Categories : New & Noteworthy

The percentage of renewable electricity purchased by U.S. companies in the information and communication technology (ICT) sector is growing and will likely increase significantly by the start of the next decade, according to the U.S. Department of Energy's National Renewable Energy Laboratory (NREL).

The report, entitled ‘Renewable Electricity Use by the U.S. Information and Communication Technology (ICT) Industry’ includes case studies of renewable energy purchased by companies including Apple, Facebook, Google and other key industry figures.

‘The ICT sector is a big consumer of electricity in the United States,’ explains NREL Senior Energy Analyst Jenny Heeter. ‘ICT companies are increasingly making long-term commitments to renewable generation, such as through 20-year power purchase agreements.’ These long-term commitments often support the development of new renewable nergy generators near new data centers.

NREL's analysis discovered that 113 ICT companies are powering 14% of their electricity needs from renewable sources, and by 2020,that figure could increase to as much as 48%. In looking at the industry, NREL found the following:

  • 113 ICT companies in the U.S. collectively consumed more than 59 million MWh of electricity in 2014, which represents 1.5% of total U.S. electricity consumption;
  • Of the 59 million MWh, 14% came from renewable electricity; and
  • By 2020, the 113 companies may procure between 18.5 million MWh to 37 million MWh of renewable electricity.

‘Twenty leading ICT companies have renewable electricity goals,’ NREL Analyst John Miller says. ‘Goals range in size from 8% to 100% renewable electricity use, with an average goal of approximately 64%.’ Potential renewable energy procurement by the ICT sector may grow as financial incentives and corporate social responsibility goals encourage a larger share of ICT companies to purchase renewable electricity and could prompt companies already purchasing to increase their commitments, the report says.

NREL says it used data from the 113 companies that report to the U.S. Environmental Protection Agency's Green Power Partnership and/or the Carbon Disclosure Project Worldwide. According to the report, companies outside the scope of the 113 reporting companies could also begin purchasing renewables, which would contribute to larger renewable use by the ICT sector.

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