Schneider Electric commits to 100% renewable electricity by 2030
Schneider Electric, a leader in digital transformation of energy management and automation, has committed to sourcing 100 percent renewable electricity and is shedding light on the doubling of its energy productivity.
The company, officials say, believes it cannot go renewable without ensuring optimization of its energy system first. The commitment is another step in Schneider Electric's effort to become carbon neutral by 2030, according to a release.
The company has joined two global collaborative initiatives led by The Climate Group and bringing together influential businesses committed to accelerating climate action:
- RE100: to use 100 percent renewable electricity by 2030 with an intermediary objective of 80 percent by 2020
- EP100: to double energy productivity by 2030, against a 2005 baseline, setting an ambitious target to doubling the economic output from every unit of energy consumed
To deliver on its new promises and sustained energy efficiency efforts, Schneider Electric plans to continue leveraging its own technical solutions (EcoStruxure Power, EcoStruxure Grid). Using the solutions, the group already has been able to reduce its energy consumption by 10 percent every three years for the past 10 years. More specifically, Schneider Electric has reduced consumption by 6 percent between 2008 and 2017 at its headquarters in France.
The energy commitments will cover more than 1,000 electricity-consuming sites around the globe, including 200 factories. Schneider Electric will leverage a broad range of renewable energy sources, including but not limited to solar, wind, geothermal and biomass.
Schneider Electric will drive its transition to 100 percent renewable electricity through three levers, with an interim goal of achieving 80 percent renewable electricity use by 2020 to 100 percent in 2030:
- On-site projects at Schneider Electric facilities around the world: With renewable energy initiatives, already in place at some Schneider Electric locations, such as a solar rooftop at its sites in Vadodara (India), Bangpoo (Thailand), or geothermal energy and a solar rooftop at its flagship office, "The Hive," France, among multiple others. Schneider Electric will install on-site renewable energy projects to help achieve its 2030 target.
- Offsite long-term procurement through power purchase agreements (PPAs): A PPA is a long-term (12-20 years) contract between a renewable energy developer and a dedicated, creditworthy buyer. PPAs enable developers to secure financing for new wind, solar or other renewable electricity projects and allow buyers to enjoy predictable pricing from clean energy sources.
- Energy attribute certificates (EACs) and green tariffs: An EAC is a free market instrument which verifies that one megawatt hour of renewable electricity was generated and added to the grid from a green power source. Schneider Electric will use EACs as a flexible and fast way to acquire and track renewable electricity.