Press Release: Bloomberg, Cox Enterprises, Gap Inc., Salesforce and Workday Close All-New Renewable Energy Aggregation Deal
January 17, 2019
Five global brands sign agreements for a joint 42.5-megawatt renewable energy deal, creating a new blueprint for renewable energy aggregation
SEATTLE (PRWEB) JANUARY 17, 2019 — Bloomberg, Cox Enterprises, Gap Inc. (NYSE: GPS), Salesforce (NASDAQ: CRM), and Workday (NASDAQ: WDAY), with guidance from LevelTen Energy and its renewable energy procurement platform, closed 42.5 megawatts of a 100 megawatt North Carolina solar project by global renewable energy developer, service provider and wholesaler, BayWa r.e. This group of companies, coming together as the Corporate Renewable Energy Aggregation Group, is the first example of companies aggregating similar, relatively small amounts of renewable energy demand to collaboratively enter into a virtual power purchase agreement (VPPA), collectively acting as the anchor tenant for a large offsite renewable energy project. The unprecedented coordination between five international businesses lays the groundwork for other corporates to procure renewable energy cooperatively, maximizing value and reducing risk.
The five members of the group, with support from the Business Council on Climate Change (BC3) and the Business Renewables Center (BRC), began collaborating in late 2017. Many potential renewable energy purchasers have historically been faced with a key problem: businesses looking to procure smaller energy loads have been unable to contract directly with large offsite renewable energy projects due to limited energy demand. This has so far restricted business’s ability to catalyze the development of new renewable energy projects. To solve this problem, the group evaluated several mechanisms for aggregating smaller amounts of renewable energy demand to afford them the collective buying power that is typically necessary to contract directly with a large offsite renewable energy project.
The eventual solution chosen by the group was a uniform VPPA contract and a single, shared legal counsel to negotiate and finalize the transaction. This helped to further streamline the final phases of the transaction. The new, simple structure allows the buyers to contract for relatively small pieces of the BayWa r.e. solar project, keep transaction costs low, and learn best practices from each other. The group hopes other buyers see this structure as a viable way to enter the large offsite renewable energy market, helping to accelerate corporate procurement of clean energy and expand renewables deployment in the U.S.
Comments on the News
- “The process of buying renewable energy through a PPA can be difficult and time-consuming, especially for buyers seeking smaller energy loads. Combining our resources as a single group of buyers has enabled us to scale our impact,” said Michael Barry, Head of Sustainable Business Operations at Bloomberg. “This transaction is a great example of a group sharing best practices, working together and showing the benefit that cross-firm collaboration can have. It also serves as an example to developers that a market exists for these types of projects.”
- “Cox is no stranger to the renewable energy space,” said Steve Bradley, Assistant Vice President Environmental Sustainability at Cox Enterprises. “We’ve already invested millions of dollars and resources into our goal of being carbon neutral by 2044. This partnership is an opportunity for us to take what we’ve already been building to the next level by joining forces with other companies who share our vision for a cleaner, more sustainable planet. This is an exciting venture because by coming together, we are creating the blueprint for companies to come.”
- “Gap Inc.’s share of the project will be used to offset the energy footprint of all Athleta stores and operations,” said Chris Samway, Senior Vice President & CFO of Athleta, a B Corp certified subsidiary of Gap Inc. “Through innovation and collaboration across industries, business can do more to create a healthier future for our people and our planet.”
- “At Salesforce, we are committed to taking a leadership role in the fight against climate change and ensuring a just transition to a low-carbon economy,” said Patrick Flynn, Vice President of Sustainability. “This collaboration is not only an important step toward advancing Salesforce’s commitment to reaching 100 percent renewable energy by 2022, but is an innovative approach that demonstrates a company of any size can play an essential role in transitioning our planet toward a clean energy future.”
- “We believe that every business should be an active and committed participant in supporting the adoption of renewable energy,” said Carrie Varoquiers, Vice President, Global Impact at Workday, and President of the Workday Foundation. “This project is a great example of the impact companies can make through strategic partnerships, and it aligns with our commitment to provide Workday customers with a carbon-neutral cloud globally.”
- “BayWa r.e. is excited to be partnering with Bloomberg, Cox Enterprises, Gap Inc., Salesforce and Workday to support their sustainability and carbon reduction goals. This is truly a milestone in corporate energy procurement. We greatly admire the collaborative Corporate Renewable Energy Aggregation Group for rethinking how companies of all sizes can access cost-competitive clean energy; this model can be replicated for companies for years to come,” said Jam Attari, Chief Executive Officer, BayWa r.e. Solar Projects, LLC. “For BayWa r.e. this novel deal is not only the right new model for corporate energy procurement, but an example of our commitment to a significant, strategic investment in key markets to support the growing demand for renewable energy by corporations in the Americas.”
The deal was coordinated by LevelTen Energy, which aggregates both buyers and sellers across national and regional renewable energy portfolios. Through the LevelTen Energy renewable energy procurement platform, buyers and sellers provide dozens of key criteria related to their purchase needs and project specifics, triggering LevelTen’s proprietary Dynamic Matching Engine to process this information in real time to create the ideal aggregation options for all parties. The LevelTen Energy platform processes more than 8 million data points across nearly 1,600 projects on a daily basis to help all energy buyers evaluate value, risk and other critical criteria required to properly pursue renewable energy procurement opportunities.
“Five buyers coming together to procure near equal slices from this project is yet another critical milestone in the expansion of the renewable energy procurement market,” said Bryce Smith, Chief Executive Officer of LevelTen Energy. “Historically, a lack of transparency, high costs and little flexibility meant only a select group of Fortune 500 buyers with immense resources could participate in this type of transaction. Kudos to these buyers for their vision and commitment toward not only impacting their own carbon goals, but also toward paving the way for many others.”
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Terminal. Bloomberg’s enterprise solutions build on the company’s core strength: leveraging technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. For more information, visit http://www.bloomberg.comor request a demo.
About Cox Enterprises
Cox Enterprises is dedicated to building a better future through our leading communications, automotive services and media companies. Our major operating subsidiaries include Cox Communications, Cox Automotive and Cox Media Group. Headquartered in Atlanta, Georgia, Cox is a global company with over $20 billion in annual revenues and brands that include Autotrader, Kelley Blue Book and Cox Homelife. Founded in 1898 by Ohio Governor James M. Cox, the company is a family-owned business committed to its people, communities and the planet. To learn more about Cox, visit coxenterprises.com.
About Gap Inc.
Gap Inc. is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Hill City and Intermix brands. Fiscal year 2017 net sales were $15.9 billion. Gap Inc. products are available for purchase in more than 90 countries worldwide through company-operated stores, franchise stores, and e-commerce sites. For more information, please visit http://www.gapinc.com.
About LevelTen Energy
LevelTen Energy is a renewable energy procurement platform that reduces the cost, complexity and risk of renewable energy PPAs by connecting buyers and sellers through analytics, aggregation and process best practices. Founded in 2016, LevelTen Energy is located in Seattle.
Salesforce, the global CRM leader, empowers companies to connect with their customers in a whole new way. For more information about Salesforce (NYSE: CRM), visit: http://www.salesforce.com.
Workday is a leading provider of enterprise cloud applications for finance and human resources. Founded in 2005, Workday delivers financial management, human capital management, and analytics applications designed for the world’s largest companies, educational institutions, and government agencies. Organizations ranging from medium-sized businesses to Fortune 50 enterprises have selected Workday.
About BayWa r.e.
Across solar, wind and bioenergy at BayWa r.e we r.e. think energy – how it is produced, how it can be stored and how it can be best used. We are a leading global renewable energy developer, service supplier, wholesaler and energy solutions provider. Globally, BayWa r.e. has brought over 3 GW of energy online, while managing over 5 GW of assets. Working with businesses worldwide, we are reducing carbon footprints and driving down energy costs. Learn more about us at: http://www.baywa-re.com