Large institutional buyers are changing the energy landscape as we know it. In the last five years, Fortune 500 companies and other large institutions, such as the military and universities, have begun to transform electricity markets by ramping up their purchases of renewable energy. David Gardiner and Associates (DGA) launched this newsletter to identify and analyze the policy and market trends that define this historic change.

What DGA Staff Read in 2019

Solar Soars in South Carolina with Energy Freedom Act – Solar Industry Magazine
Large companies successfully lobbied for greater access to renewable electricity in several states. South Carolina's Energy Freedom Act gives large energy consumers the opportunity to negotiate directly with small power producers and achieve solar power without interference from the state’s utilities. – David Gardiner, President

L.A. Looks to Break Price Records With Massive Solar-Battery Project – Greentech Media
The Los Angeles Department of Water and Power’s (LADWP) Eland Solar and Storage Center includes a fixed cost of less than 2 cents per kilowatt hour for solar power, and a combined solar-plus-storage price of 3.3 cents per kilowatt-hour; both record-lows for the U.S. market. – Blaine Collison, Senior Vice President

To Make Headway on Climate Change, Let’s Change the Subject: States point to the economic advantages of cleaning up their electric grids. – New York Times
Renewable energy is a bipartisan issue, as evidenced by several recent national and state-level polls and bills passed in Arkansas and South Carolina this past year. However, the message matters, and focusing on economic development, jobs, and costs to consumers is the winning strategy. – James Hewett, Vice President of Renewable Energy

Tracking Progress on 100% Clean Energy Targets – Greentech Media 
Following policy action from states and cities, a new report found that now one of every three Americans, or roughly 111 million U.S. residents representing 34 percent of the population, live in a community that has committed to or has already achieved 100 percent clean electricity. Utilities are also making significant commitments to decarbonize. – Lynn Kirshbaum, Senior Associate

4 Takeaways From Amazon’s Huge Electric Delivery Van Order – Greentech Media
It is exciting to see the next wave of climate commitments around transportation, efficiency, and supply chain emissions reductions from leading companies. – Isabel Harrison, Communications Manager

U.S. has only one offshore wind energy farm, but a $70 billion market is on the way – CNBC
States and companies are finally starting to realize the vast potential of offshore wind capacity, and there is a lot of innovative technology in this space that will help drive the market. – William Sherman, Research Associate

Overall Wind and Solar Trends in 2019

The cost of renewables in the U.S. is continuing to decline year-over-year. As reported by Lazard’s most recent Levelized Cost of Energy analysis, LCOE 13.0, the price of onshore wind energy decreased 70% and the price of utility-scale solar decreased 89% over the past decade.
 
This cost-competitiveness means that wind and solar deployment continues to trend upwards. According to the Solar Energy Industries Association, the U.S. reached 71.3 GW of total installed solar capacity last quarter, which is enough energy to power 13.5 million American homes. The American Wind Energy Association reported that there are now over 100 GW of wind power capacity in the U.S., with nearly 2 GW of installed capacity in Q3 of 2019 alone. The U.S. Energy Information Administration Short-Term Energy Outlook projects that wind, solar, and other non-hydropower renewables will provide 10% of total utility-scale electricity generation in 2019, and 12% in 2020.
 
Corporations are continuing to play a significant role in renewables growth. Large buyers purchased over 7 GW of renewables during the first three quarters of 2019. 50% of the individual corporate buyers this year were first-time buyers in the U.S., spanning multiple sectors from the retail industry to telecommunications to food manufacturing.

Major Corporate Renewable Landmarks 2019

In a momentous year for corporate renewable deals, Fortune 500 companies across multiple sectors drove growth for the clean energy sector through large procurements, ambitious sustainability targets, and promotion of pro-renewable energy policies.

• Companies in the IT sector spent the year fighting for media coverage as deal after deal was announced by many of the industry’s top names. Iron Mountain, AT&T, Facebook, Microsoft, Amazon, Apple, eBay, Samsung, and Sprint all announced significant renewable energy deals. Google announced the largest corporate renewables purchase in history.
• Manufacturers worked to lower their carbon emissions, including 3M, Kimberly Clark, and steel plants in the Midwest. Unilever achieved 100% renewable electricity across five continents.
• Even those in the oil and gas industry are looking to power their facilities with clean energy, such as Occidental Petroleum and Chevron.
• Major retailers announced several deals, including Target, Estée Lauder, Procter & Gamble, Walmart, and Whole Foods.
• The financial industry continued to work toward a low-carbon future with deals from Wells Fargo, Bank of America, Goldman Sachs, and Citi. Goldman Sachs and other large banks also announced plans to stop financing certain fossil fuel projects.