How Big Tech Companies Account For Rising Alternative Energy Demands

How Big Tech Companies Account For Rising Alternative Energy Demands

Green energy is good. It’s good for the environment, it’s good for your health, it’s good for large corporations and their bottom line. Wait, what? Yeah, that’s right! Alternative energy in Tampa and other places in the United States have proven extremely beneficial for large enterprises since most run their operations with it. In 2016, for example, Intel and Microsoft became the largest users of green power in the country with annual usages of 3.4 billion kWh and 2.6 billion kWh respectively.

Renewable energy has always been cheaper than traditional sources, like fossil fuels, and this is why more and more corporations are taking up this option when it comes to generating their own power. However, there’s more at play here than just price. A study conducted by PwC found that corporate sustainability guidelines have played a major role in these purchasing decisions.

Renewable energy sources like wind and solar, however, account for just 10 percent of the total energy used and 13 percent of all the generated electricity. This comes at a time when corporate contracts for alternative energy have almost tripled in the span of a year in 2015. Such a situation raises concerns about technology, financing, and business models when the reach of alternative power encompasses 40 or even 50 percent of the market in the US. Below we present a few ideas about how the demand for alternative energy among big tech companies can be satiated.

Figuring Out the Drawbacks

Any viable solution starts by understanding the root of the problem. In the case of renewable energy, the problem stems from the supply. There is no shortage of corporate demand but what’s lacking is suitable infrastructure to deliver the same. Companies in the past always had a say in the kind of fuel they would use to produce electricity. There was scarcely any incentive to raise the percentage of alternatives in the energy mix or to come up with a new technology that would encourage the same. This led to a gap that now exists in infrastructural capabilities.

Strength in Numbers

Unfortunately, it’s very hard for big tech companies in the US to buy as much alternative energy as they want. While retail customers in various states can arrange for the wind or solar power from the local utilities, larger companies must source this energy from sophisticated teams to enjoy renewable energy at the scale they require, and that isn’t always available.

In order to turn tables on this scenario, one must consider the demand side where tech corporations are joining hands to add more impetus to their preference for greater amounts of alternative energy. For instance, Microsoft and Facebook have become part of a larger, more expansive network – REBA (Renewable Energy Buyers Alliance) – the purpose of which is to overcome the hurdles that lower-carbon energy faces. This group, made up of 60 different companies and more than 50 leading service providers and project developers, aims to see the US get 60 gigawatts of power by the year 2025. This is a radical jump from the 3 gigawatts of alternative power purchases allotted to companies in 2015, considering the fact that 60 gigawatts is the same as Turkey’s total generating capacity. Considering the present scenario, it is a difficult dream to achieve although not an impossible one.

Alternative Measures

There is no need for complications in the current scenario. Alternative energy is a rare instance where the rules of supply and demand can be tweaked as necessary, owing to the limitless supply of raw material. As long as the sun exists, we won’t face a crisis of solar power anytime soon. The same applies to wind energy. All that is required are innovative technologies with the potential to capture economies of scale. Change can also take place at the local and state levels. However, all this pales in comparison to a coalition of industrial giants with a hunger for power and corporate targets of social responsibility.

There is no doubt that corporations are among the fastest growing segment of customers in the renewable energy market, partly due to the fact that alternatives are consistent whereas price variability is inevitable in the fossil fuel industry. Moreover, as the cost of solar and wind energy continues to drop, economic benefits are bound to increase, and the high demand is sure to encourage greater efficiency, innovation, and advanced technologies.

Focus on Solar Energy

Cooperation can pave the path toward advancement. For example, in the state of Virginia, Dominion Virginia Power, which is a utility of the Microsoft Corp, worked with officials of the state to gain access to the alternative energy grid with a new solar project. This means Microsoft is going to purchase the solar power certificates which are going to prove crucial in realizing its long-term corporate sustainability goals. Moreover, there is a high chance that the project will reap good financial rewards for the utility which will allow them to set up a fully-functional solar farm without costing the taxpayers a single cent. It’s a win-win situation all around. There, however, needs to be a noticeable improvement in the existing infrastructure if solar energy wants to meet the demands of the tech industry the way it meets the requirements of homes and schools.

Corporations want smart and highly efficient alternative energy solutions in Tampa and other places that will not just allow them to gain control over energy costs, but manage the overall usage of energy as well. Tech companies are at the forefront of this revolution. For this purpose, smart grid systems have begun to enable businesses so that they gain the benefit of peak shaving and demand response innovations. The mix of cloud-based information measures and storage is capable of enabling smart, connected buildings that utilize and manage energy in a more effective manner than before. The more the information, the more will be the visibility a company can expect to enjoy over the energy that they use. This, in turn, means greater control over the bottom line energy expenses.

The post How Big Tech Companies Account For Rising Alternative Energy Demands appeared first on NaturalNews Blogs.

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