Category: Blog

By Camorah King

Utility green tariffs in regulated Asia-Pacific markets offer a potential solution for energy customers seeking to partner with their utility to meet electricity demand with clean energy. A new report from the Clean Energy Buyers Association and the Asia Clean Energy Coalition (ACEC), Expanding Clean Energy Procurement Options in the Asia-Pacific Region: The Role of High-Impact Utility Green Tariffs, explores factors that have made utility green tariffs successful in the United States and discusses how utilities, regulators, and customers in the Asia-Pacific (APAC) region have an opportunity to adapt a proven model to their local needs in order to achieve decarbonized economic growth.

CEBA and ACEC highlighted the report during presentations at the Global Renewables Alliance Corporate Sourcing event at the Global Wind Energy Council’s APAC Wind Energy Summit, held November 26-28 in South Korea. CEBA and ACEC also featured the report at other events during the week, including a roundtable co-hosted by SEMI Energy Collaborative, Solutions For Our Climate, and the Korea Chamber of Commerce and Industry, on accelerating renewable energy procurement in South Korea’s semiconductor industry, as well as an event hosted by ACEC on advancing clean energy procurement options in the Asia-Pacific region.

Utility green tariffs are created through a regulator-approved utility program that allows customers to buy both the energy and associated energy attribute certificates (EACs) from clean energy projects through an independent tariff or as an adjustment on a customer’s electricity bill. The tariffs can be implemented in liberalized as well as vertically integrated markets, making them a feasible option for single-buyer and partially liberalized markets such as those in Indonesia, South Korea, Thailand, Taiwan, and Vietnam. Notably, Thailand has led the region in developing its Utility Green Tariff with Specific Sources (UGT2) program, set to open for application in July 2025.

Attendees at the South Korea events in November learned about the role utility green tariffs can play in markets that already have procurement options such as power purchase agreements (PPAs) and how the tariffs differ from Korea Electric Power Company’s (KEPCO’s) existing Green Premium program as well as third-party PPAs signed with KEPCO. Programs like KEPCO’s Green Premium and Malaysia’s Green Electricity Tariff only allow customers to purchase unbundled EACs on top of their regular electricity bill, for energy that is either from existing or unspecified sources.

Through a utility green tariff program, the utility will either self-build or sign a PPA with a developer to build new clean energy dedicated to the tariff program.The utility also announces a set gigawatt amount and eligibility criteria for customer application for the program, providing a streamlined and transparent approach.

Energy customers need an improved and expanded menu of procurement options that provides them with a variety of cost-competitive options, including access to new and high-impact clean energy. Utility green tariff programs are one procurement option that should be offered among a suite of options, especially if PPAs are not accessible due to cost, credit, or regulatory barriers.

In vertically integrated markets, a utility green tariff program may be the most feasible interim option on the road to direct PPAs and liberalization. CEBA and its members are eager to see the successful implementation of these tariff programs across the Asia-Pacific region.

By Celeste Wanner

Energy customers in Louisiana can now buy more solar energy thanks to new and updated green tariff programs recently approved for Entergy Louisiana by the Louisiana Public Service Commission. The utility can now add 3,000 megawatts (MW) of solar resources through three green tariff programs, the largest expansion of renewable energy for both the utility and the state, tripling the existing operating and previously approved solar capacity.

Entergy Louisiana initially requested approval forcertification of up to 3,000 MW of solar resources, as well as a new renewable tariff called Geaux ZERO designed for large industrial customers and an alternative market-based mechanism to procure solar resources. CEBA was brought in as an expert witness by the Southern Renewable Energy Association (SREA), and CEBA’s Priya Barua gave expert testimony in fall 2023, providing recommendations to improve the proposed Geaux ZERO program by making it accessible to more customers in the state.

CEBA advocated for lowering the minimum subscription level for Geaux ZERO from 100 MW to 50 MW and allocating a portion of the 3,000 MW solar portfolio to Entergy Louisiana’s existing Geaux Green program, which is open to commercial and industrial customers of all sizes and had an outstanding waitlist. In addition, CEBA supported eligibility for specific industrial rate schedules that were initially excluded from participating in Geaux ZERO. The final settlement agreement included multiple changes to Entergy’s initial Geaux ZERO proposal, including a new tariff for corporate and industrial customers: Geaux Green Limited (or Rider GGL), and allocation of up to 1,000 MW of solar resources to be split between the utility’s existing Geaux Green program (Rider GGO) and Rider GGL. In line with CEBA’s recommendations around the value of expanding accessibility to more customers, the subscription cap on the existing Rider GGO was raised to allow more customers to better meet their clean energy needs. Customers who are currently subscribed to Rider GGO or on the waitlist for the previous maximum of 50 MW can now request additional capacity up to 100 MW.  

Highlights of the three green tariff programs:

• Geaux Green (Rider GGO)

At least 500 MW of solar will be added to the existing Geaux Green program, on top of 700 MW of solar previously approved for the program and another 100 MW pending approval. Rider GGO is open to all customers, including commercial, industrial, and residential customers. Subscriptions are filled on a first come, first served basis, and Entergy Louisiana has an ongoing waitlist for the program. Customers can subscribe to one year, auto-renewing terms. The existing Geaux Green waitlist as of June 2024 will be filled before solar resources are allocated to Geaux Green Limited.

• Geaux Green Limited (Rider GGL)

Up to 500 MW of solar will be dedicated to the new Geaux Green Limited program. Rider GGL is open to nonresidential customers across commercial and industrial rate classes and will have a dedicated set of solar resources, and therefore a different subscription price, than Rider GGO. Rider GGL will use a pro-rata subscription allocation based on the number of customers who request a subscription and will have a one year auto-renewing term.

• Geaux ZERO (Rider GZ)

Entergy’s new Geaux ZERO tariff will have up to 2,000 MW of solar available and is open to large industrial customers who subscribe to at least 100 MW of solar resources. Geaux ZERO requires a longer-term commitment than Riders GGO and GGL, with terms of 10, 15, or 20 years. Up to 1,000 MW was reserved for customers who signed contracts before the end of 2023. If Geaux ZERO is not fully subscribed after two years, the remaining solar capacity will be made available through Rider GGO.

Customers can currently sign up for the Geaux Green waitlist, while enrollment for Geaux Green Limited and Geaux ZERO will be available at a future date after Entergy Louisiana has procured resources to supply the tariffs. You can find additional information on Entergy Louisiana’s website or by contacting an Entergy account manager.

By Camorah King

Access to new, reliable, and cost-competitive clean energy is a high priority for Clean Energy Buyers Association (CEBA) members’ current and planned investments in Japan. CEBA’s members and their more than 1,000 value chain partners located in Japan have ambitious decarbonization goals, with some companies seeking 100% carbon-free energy across their value chain as early as 2030.

Japan, with Asia’s second-largest economy and the world’s third largest manufacturing market, is a critical energy market for CEBA members. However, Japan’s current renewable energy supply is limited and represents only 25% of the nation’s electricity mix. To offer possible solutions that will help facilitate customers’ clean energy procurement in Japan, CEBA has published an Issue Brief on Energy Customer Needs in Japan. The issue brief also is available in Japanese. The brief discusses ways Japan can lower costs and enable accelerated clean energy investment and procurement, by:

1. Facilitating the buildout of an 80% clean energy grid by 2035 through increased government investment, as well as opening new accessible land, improving grid infrastructure, and streamlining permitting and planning;

2. Unlocking market competition and demand-side participation in policy-making processes to catalyze clean energy at least cost through economies of scale; and

3. Enhancing and expanding cost-effective clean energy options for energy customers.

Since 2014, Japan has added an average capacity of 7.6 gigawatts (GW )of renewable energy annually, though the additions have decreased to just 4 to 5 GW during the past two years. Companies report they can only cost-effectively source 25% of their electricity demand with renewables in Japan, compared to a 50% global average.

Installation costs for renewable energy in Japan are among the highest globally, with utility-scale solar more than double the global weighted average. According to an analysis released by the SEMI Energy Collaborative, corporate energy customers in Japan by 2030 could face a 20% to 50% shortfall against their clean energy targets.

Despite these challenges, Japan has enough renewable energy potential to achieve climate neutrality by 2050 and achieve its commitment to the 3XRenewables Pledge. Various studies estimate that Japan has somewhere between 670 to 3,710 GW of solar, wind, and geothermal resource potential. A Lawrence Berkeley National Laboratory study found that if Japan increased renewable energy deployment by an average of 10 GW per year between 2020 and 2035, average wholesale electricity costs would decrease by 6% from 2020 levels.

Japan is currently updating its Strategic Energy Plan, which is revised every three years to direct Japan’s energy policy. The Ministry of Economy, Trade and Industry  also aims to maximize the impact of Japan’s Green Transformation (GX) Promotion Strategy in order to promote economic growth through a clean energy transition.

As the government of Japan makes these updates, CEBA strongly encourages the nation to consider the recommendations in CEBA’s issue brief. Accelerating clean energy investment and deployment provides an opportunity for Japan to retain and attract new investment in critical industries, strengthen industrial competitiveness, enable electricity cost savings, improve self-sufficiency and resilience, and contribute to carbon neutrality by 2050.

CEBA and its members are eager to support partnership with Japan to build a resilient, carbon-free electricity system. Through the Clean Energy Demand Initiative, a joint Secretariat with the U.S. Department of State, CEBA fosters public-private collaboration to accelerate the global deployment of clean energy. As a partner of the SEMI Energy Collaborative, CEBA supports the recommendations provided in SEMI’s position paper for Japan.

For more information on CEBA’s engagement in Japan, contact Camorah King.

91 GW voluntarily procured since 2014

Energy customers continue to contract for significant additions of clean energy to the U.S. grid despite challenges. In the Q3 2024 Deal Tracker Update CEBA reports an additional 13.4 GW year-to-date and 4.5 GW this quarter alone. We believe this will be the strongest year on record. 

Contracted Clean Energy Capacity to U.S. Grid Announced by Voluntary Corporate Energy Customers
	2022	2023	2024
Q1	2.2	3.2	4.6
Q2	5.7	2.9	4.3
Q3	4.1	2.2	4.5
Q4	5.0	4.8	NA
Total	16.9	13.1	13.4 (Q1-Q3 only)

Energy customers spurred innovation this year to continue momentum toward a carbon-free electricity system by: 

• Expanding investment into geothermal and nuclear
• Investing in clean energy through tax equity 
• Increasing brand-forward, policy engagement

Technology Expansion: Growing Investment in Geothermal and Nuclear

The technologies involved in corporate-backed clean energy procurement are diversifying, with multiple geothermal and nuclear deals being announced this year for the first time at scale. 

• Google and Meta will each procure more than 100MW of geothermal power.
• Microsoft is working to repower a nuclear power plant.
• Google announced the first corporate power purchase agreement for electricity from multiple small modular reactors. 
• Amazon signed three agreements to support nuclear energy projects. 

Diversifying Procurement Methods: Rise in Tax Equity

Traditionally reserved for banks, we are starting to see a rise in customers engaging with the tax equity market. Inflation Reduction Act (IRA) provisions are enabling these tax equity investments. For corporations with significant tax burdens, a further dive into IRA provisions can unlock investment opportunities.

• Tax equity deals accounted for 10.7% of clean energy capacity announced in deals tracked by CEBA during Q1-Q3 in 2024, compared to 4.25% in 2023. 
• In 2024, Nestlé, Google, and UnitedHealth all announced tax equity deals, showing the diverse range of industries that have found benefits to this clean energy investment. 

Brand-Forward Policy Engagement: Clean Transition Tariff

This past year, corporate energy customers have been working innovatively with diverse stakeholders to create programs to unlock additional supply. 

• Google partnered with NV Energy to develop the Clean Transition Tariff.
• Duke Energy, Google, Microsoft, and Nucor announced a new business model to support the advancement of clean electricity technologies. 

About the CEBA Deal Tracker

Since 2014, CEBA has tracked U.S. corporate commitments to clean energy and shares the findings and analysis with members and, at a high-level, the public through the CEBA Deal Tracker. The CEBA Deal Tracker is an opportunity to demonstrate leadership and collaboration in the corporate clean energy market and the growth in demand for clean energy. This data makes the business case for providers to offer additional carbon-free energy products and contracting structures to meet growing customer demand. 

If you have information about a clean energy project your organization is involved with that you would like to share, please contact the CEBA team at education@cebuyers.org. All information is kept confidential and is reported in the aggregate only.

The full CEBA Deal Tracker download is available for CEBA members on CEBA InterConnect.

CEBA members and leaders from across the clean energy industry again converged in San Jose, California, to discuss critical trends in clean energy and sustainability and discuss ways to move the market forward in the face of increasing demand and market challenges.

During the October 29-31 conference, CEBA members and staff collaborated to deliver impactful content, share insights, and pose the tough questions. It was a packed agenda and time well spent. We laughed and relaxed in the lounge and put our heads together on solutions during conversations. Some key themes stood out and have stuck with us. Here are a few:

Navigating Rising Electricity Demand

VERGE 24 underscored the need to prepare for escalating electricity demand driven by emerging sectors like vehicle and building electrification, artificial intelligence, and data centers. The U.S. grid must evolve to meet this rising load while integrating clean energy sources. For CEBA and its members, this means doubling down on innovative energy procurement solutions and scaling clean energy generation to support economic growth. CEBA CEO Rich Powell emphasized this moment as a unique opportunity to harness innovation, noting Princeton University’s Net Zero America projections that clean energy generation must double or even quadruple by 2050 to achieve net-zero carbon emissions. If you missed Rich speaking about this on the VERGE main stage, catch up with the recording on YouTube, around the 16:33 mark.

Embracing Clean, Firm Energy Resources

Speakers highlighted the strategic importance of clean, firm power solutions such as advanced nuclear and geothermal energy. CEBA members including Amazon, Google, and Microsoft are already forging agreements to develop and deploy advanced nuclear technologies and geothermal projects. These clean technologies will play a critical role in stabilizing the grid, particularly as companies increasingly rely on round-the-clock clean power to fuel new technologies.

Accelerating Clean Energy Deployment through Policy Progress

A key theme at VERGE 24 was the urgency of robust clean energy policy at both state and federal levels. Attendees and speakers emphasized the need for streamlined permitting processes to scale renewable energy projects and the importance of maintaining incentives that encourage investment in clean energy solutions.

Innovative Procurement Models and Partnerships

Discussions pointed to the continuing importance of procurement models like green tariffs, virtual power purchase agreements (VPPAs), and partnerships with utilities. For example, CEBA this past spring negotiated and secured a letter agreement with Georgia Power that calls for the utility to develop a new customer clean energy program that would allow large customers to bring clean energy projects to Georgia Power’s system. These types of agreements align with CEBA’s commitment to creating accessible pathways to procure reliable, clean energy.

Embracing a Resilient Grid with Flexibility and Storage

With recent extreme weather events driven by the rapidly changing climate, the need to enhance the flexibility and reliability of the grid was a big priority for VERGE attendees. Many discussions referenced the value of pairing clean energy generation with battery storage systems to increase grid reliability and achieve a more distributed power grid. 

Equity and Just Energy Transition

A standout session explored the social and environmental justice dimensions of the energy transition. Speakers discussed the need for more equitable procurement policies that drive investments in disadvantaged communities and give these communities more access to affordable, clean power. Corporate leaders were urged to take proactive steps to align their energy procurement efforts with the Biden administration’s Justice40 Initiative, which aims to direct 40% of the benefits of climate investments to underserved populations, ensuring their clean energy purchases contribute to positive local impacts.

VERGE 24 left attendees with a clear message: accelerating the clean energy transition demands collaboration, innovation, and clever, adaptable policy. The conference underscored the need to align clean energy procurement strategies with federal and state policy developments, enable more innovative financing models, and work toward achieving a more resilient electricity grid that benefits all power consumers, especially those in disadvantaged communities. As demonstrated throughout this year’s VERGE conference, CEBA and our members will continue leading the way toward a clean energy future.

This year at VERGE, the Clean Energy Buyers Association is hosting a session on how energy customers can leverage clean energy to reduce emissions coming from the buildings all around us. The opportunity and path forward is shared here.

Commercial buildings represent more than 1/3 of electricity consumption in the U.S.¹ With changing market and environmental conditions, buildings must operate more efficiently and must use clean energy.

Buildings are the backbone of our society, our homes, schools, grocery stores, and workplaces. They provide stability and comfort but also require energy to operate — nearly three-quarters of the U.S. electricity demand.² We can transform buildings across the United States into models of efficiency, sustainability, and innovation. Imagine a futureare efficient, run on clean energy, and may even be a source of power, while producing 65% less greenhouse gases in the next 10 years as envisioned by the U.S. Department of Energy (ambitious but possible!).³

CEBA envisions a future for commercial real estate decarbonized through five principles:

1. Build collaboration and partnership. Landlords and tenants work together to identify sustainable energy practices.
2. Ensure transparent energy use per tenant. Tenants and landlords alike can make informed decisions about energy thanks to better reporting and data that is available, up to date, and representative of reality.
3. Prioritize energy reduction and efficiency. About 30% of energy that flows to and from commercial buildings in the U.S. is lost.⁴ Tenants and landlords together can implement efficiency measures in building operations. In addition, buildings themselves can be constructed with efficiency and a green supply chain in mind. At Climate Week the Sustainable Steel Buyers Platform sent a strong signal for clean steel demand from major building owners, operators, and tenants.
4.  Provide access to meaningful clean energy options. Landlords can act on behalf of their buildings and tenants and provide access to cost-competitive solutions. Such options can provide new energy resources to the grid, emphasize responsible resource use, and promote community development.
5. Engage in public disclosure and benchmarking. Reporting energy performance while setting and disclosing progress leads to a higher standard of energy use while simultaneously rewarding landlords who have set goals and demonstrated an attention to achieving them.

Incorporating new practices for energy efficiency and sorting through clean energy options can be daunting. You are not alone, and there is much you can learn from the experiences of your peers. Therefore, it’s essential to find partners and peers to collaborate with in your journey — such as through CEBA’s Real Estate Working Group — to develop shared solutions. 

VERGE 24 is one such avenue for collaboration. This annual event convenes those committed to improving the way we live and work. Each programmatic track takes attendees through components in our collective journey toward decarbonization. This year, join us for our Leveraging Clean Energy to Combat Building Emissions session at VERGE 2024 on October 29 at 3:15 PM. During this session, we will explore the ways organizations are reducing their building emissions through clean energy procurement with no short supply of creative thinking. Attendees will hear case studies from large energy customers who have gone through the process of evaluating their clean energy needs as well as the perspective of seasoned advisors on how you can join the ranks of those taking action to spearhead cleaner buildings.

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¹About the Commercial Buildings Integration Program | Department of Energy
²“Decarbonizing the U.S. Economy by 2050: A National Blueprint for the Buildings Sector.” United States Department of Energy, 2024. Decarbonizing the U.S. Economy by 2050 (energy.gov)
³“Decarbonizing the U.S. Economy by 2050: A National Blueprint for the Buildings Sector.” United States Department of Energy, 2024. Decarbonizing the U.S. Economy by 2050 (energy.gov)
⁴https://www.energystar.gov/ia/partners/publications/pubdocs/C+I_brochure.pdf