Virtual power purchase agreements often most cost-effective way for corporations to add renewable energy, according to new study
New Rocky Mountain Institute study unveils key learnings from Cummins Inc.’s 2017 75 MW wind project
Boulder, CO – October 3, 2018 – Today, the Business Renewables Center (BRC), a program of Rocky Mountain Institute (RMI), released a case study that offers insights on how Cummins Inc., a global power equipment manufacturer, has enabled a new large-scale renewable energy project that offers the greatest opportunities for positive environmental and social impacts.
Cummins Inc. signed its first virtual power purchase agreement (VPPA) with project developer EDP Renewables in August 2017, for 75 megawatts (MW) of wind capacity over 15 years.
“To get this deal done we had to strike a balance between community benefit and environmental impact on one side, and financial risk on the other side,” explained Mark Dhennin, Director of Energy and Environment at Cummins.
Cummins is a member of the BRC, and the BRC’s new report on its VPPA provides a framework for corporate decision-making on renewable energy, which may be of interest to other buyers that are strongly focused on sustainability impact and considering different renewable project options. Cummins used this cost-benefit framework in their deal process to identify the project with the highest environmental impact and an acceptable net financial impact.
“We want to maximize our impact,” said Brian Mormino, Cummins’ Executive Director of Worldwide Environmental Strategy & Compliance. “It was very important to us to choose a project that added renewable capacity while providing tangible environmental and community benefits. Our analysis showed that a VPPA is the most cost-effective way to achieve that in Indiana.”
The case study was developed as part of BRC’s digital Learn | Analyze | Opportunities suite and industry resource library that includes the Market Analysis Platform (MAP) for scoping project value, and the BRC Marketplace that connects corporate buyers and service providers with available renewable energy projects and project developers. BRC’s knowledge and tools have been growing the market and the BRC now has a membership of over 250 corporate buyers, renewable energy project developers, and intermediary service providers.
To download a copy of the study, click here.
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About Rocky Mountain Institute
Rocky Mountain Institute (RMI)—an independent nonprofit founded in 1982—transforms global energy use to create a clean, prosperous, and secure low-carbon future. It engages businesses, communities, institutions, and entrepreneurs to accelerate the adoption of market-based solutions that cost-effectively shift from fossil fuels to efficiency and renewables. RMI has offices in Basalt and Boulder, Colorado; New York City; Washington, D.C.; and Beijing.
About the Business Renewables Center:
Rocky Mountain Institute’s Business Renewables Center (BRC) is a member-based platform that streamlines and accelerates corporate purchasing of of-site, large-scale wind and solar energy. With over 250 members, including major corporations, leading renewable energy project developers, and transaction intermediaries, the BRC embodies the know-how of the industry. Today, BRC members account for over 13 gigawatts of renewable energy, and more than 98% of corporate renewables deals to date have included a BRC member. With a goal to help corporations procure 60 gigawatts of renewable energy by 2030, the BRC is at the leading edge of the fastest-growing sector of renewable energy procurement.
More information on the BRC can be found at http://www.businessrenewables.org
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute, and service a broad portfolio of power solutions. The company’s products range from diesel and natural gas engines to hybrid and electric platforms, as well as related technologies, including battery systems, fuel systems, controls, air handling, filtration, emission solutions, and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins currently employs approximately 58,600 people committed to powering a more prosperous world. Cummins serves customers in approximately 190 countries and territories through a network of approximately 500 company-owned and independent distributor locations and approximately 7,500 dealer locations. Cummins earned about $1 billion on sales of $20.4 billion in 2017.
Press releases can be found on the web at www.cummins.com. Follow Cummins on Twitter at www.twitter.com/cummins and on YouTube at www.youtube.com/cumminsinc