Optimal sourcing strategy for enterprises to achieve 100% renewable energy

Abstract

RE100 is a voluntary campaign for global companies to use 100% renewable energy in their business and production processes. Many global companies participating in RE100 have adopted various approaches for renewable energy sourcing. There is increasing awareness that global companies cannot indefinitely avoid participating in the RE100 campaign, however, there has been limited research on economically achieving RE100. This paper provides an optimal strategy for companies to source renewable energy to economically achieve RE100 in the future. The approaches for meeting energy demands with renewable electricity are analyzed, and a feasible sourcing strategy is presented. Additionally, using the linear programming optimization technique for quantitative analysis, an annual strategy is derived for cost minimization while achieving RE100 during the analysis period. The analysis shows that as the renewable energy generation cost decreases over time, the cost-effective strategy is to deviate from the utility environment at a specific time and select corporate power purchase agreements for implementing RE100, and it further demonstrates the need for policymakers to create an environment in which companies can freely choose from a combination of power purchase options and various certification methods to maximize their enterprise competitive power.

Keywords

• RE100
• Optimal sourcing strategies
• Monte Carlo simulation
• Electricity markets