How Corporations Can Maximize the Environmental Benefits of Their Renewable Energy Purchasing

The guide explains that the carbon-reduction impact of renewable energy projects varies by location because different projects displace different types of power plants. It argues that relying on proximity to operations as a proxy for quality may limit environmental benefits, suggesting instead that buyers target the most carbon-intensive areas to maximize avoided emissions.

• Corporate renewable energy procurement reached a record in 2017, with 5.4 GW of contracts signed via power purchase agreements, including 3.1 GW in North America.
• The environmental impact of new renewable energy is determined by 'avoided emissions,' which depends on which specific power plants the new capacity displaces. This impact varies significantly based on the project's location.
• Using proximity to company facilities as a proxy for project quality may result in lower real-world carbon reductions compared to targeting the most carbon-intensive areas.
• Data from WattTime indicates that location significantly affects CO2 displacement; some North American solar projects displace up to three times as much CO2 as similar projects in other locations.
• A study of seven potential sites for a 3 MW off-site solar project involving Boston-area institutions found that one site performed 176 percent better than a baseline site regarding avoided emissions.

APA

RMI (2018). How Corporations Can Maximize the Environmental Benefits of Their Renewable Energy Purchasing. https://rmi.org/resources/how-corporations-can-maximize-the-environmental-benefits-of-their-renewable-energy-purchasing/

Chicago

RMI. How Corporations Can Maximize the Environmental Benefits of Their Renewable Energy Purchasing. 2018. https://rmi.org/resources/how-corporations-can-maximize-the-environmental-benefits-of-their-renewable-energy-purchasing/.

Wikipedia

{{cite report |author=RMI |title=How Corporations Can Maximize the Environmental Benefits of Their Renewable Energy Purchasing |date=12 April 2018 |url=https://rmi.org/resources/how-corporations-can-maximize-the-environmental-benefits-of-their-renewable-energy-purchasing/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2018how, author = {{RMI}}, title = {{How Corporations Can Maximize the Environmental Benefits of Their Renewable Energy Purchasing}}, institution = {RMI}, year = {2018}, month = apr, url = {https://rmi.org/resources/how-corporations-can-maximize-the-environmental-benefits-of-their-renewable-energy-purchasing/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }