Energy firms launches renewables development plan

Sixteen companies have come together, with the support of WBCSD to improve renewable energy capacity two fold by 2025. Those companies involved are Acciona, DNV GL, Statkraft, AAB, CLP, EDF, ENGIE, Eskom, First Solar, Iberdrola, NRG Energy, Schneider Electric, State Grid Corportion of China and Vestas.

The action plan is named “scaling up renewables” and will involve the global deployment of 1.5TW of additional capacity by 2025. Together the companies represent nearly 10% of the world’s capacity. They will focus on removing the barriers which are preventing uptake on renewable energy through the following means:

1. Allowing efficient and reliable integration of energy into grids and electric markets which are commercially viable.

2. Scaling up green bond finance and limiting the risk in investment.

President and CEO of the WBCSD Peter Bakker said: “Accelerating the development and deployment of renewable energy is a critical part of the 2°C pathway. We are working with the world’s most forward-thinking companies to develop innovative low carbon solutions that can help address the climate challenge.” “Today’s announcement on Renewables shows that businesses around the world are taking concrete action to combat climate change as they see the multiple integrated benefits of investing in a low carbon world.” An initial impact assessment of the partnership has suggested the potential for creation of $3.5 trillion of investment and 15 million jobs through the initiative.

CEO of EDP Group, António Mexia said: “Renewable energy is crucial in addressing climate change and presents substantial economic opportunities given increasing cost-competitiveness with other power sources. EDP recognizes the urgency of the need to move towards a low carbon economy and the opportunities associated with this, and has committed to increasing electricity generation from renewable sources to 75% of installed capacity by 2020.” “Considerable progress has been made in renewable energy deployment globally, however, the time for a major step-up has come. New business models are needed to enable the scaling up of renewable energy at the speed that is required. The LCTPi framework presents an opportunity for business to work collaboratively to make this happen, and to ensure our companies are well placed to benefit from the resulting opportunities.” CEO of Iberdrola, Ignacio S. Galán said: “Decarbonisation of the world’s electricity generation is a crucial part of the transition to a low carbon economy. Iberdrola began this transition nearly 15 years ago. Today, our specific emissions are 30% lower than the average of the European electricity sector thanks to our reliance on renewable energy. But we can do more, and we have set tough new environmental targets for our generation business with the aim of reducing, by 2030, our CO2 emission intensity by at least 50% from emissions recorded in 2007 and, furthermore, to become completely carbon neutral by 2050.” “Acceleration of renewable energy deployment must take place globally in order to achieve the decarbonisation required to limit climate change to below the 2°C threshold. Businesses and governments alike need to work together to set the right policy framework and remove barriers. Under the LCTPi framework, we are working with other innovative companies and partners to proactively develop business-led solutions to address key barriers which, in addition to ongoing technological innovation driven by the electricity industry, will speed up decarbonisation of the economy.” Chief Sustainability Officer of NRG, Leah Seligmann said:

“Acting on climate change is not a choice but a necessity. The LCTPi Renewables working group is an opportunity for large users and producers of energy to accelerate the shift to a low carbon future. Driven by business and economic factors as much as societal, corporations of all types have the freedom and the ability to innovate and solve the world’s greatest challenges for mutual benefit. To stay below 2°C, one step we know we must take together is investment in and adoption of clean energy solutions.” Chairman & CEO of ACCIONA, José Manuel Entrecanales said:

“Renewable energy is ready to match the challenges of Sustainable Development; however, scaling-up and accelerating its deployment is decisive in slowing down global warming. Implementing effective carbon pricing mechanisms and developing initiatives like LCTPi, that addresses future market structures and regulatory frameworks, are key elements in moving forwards to a low carbon economy.”