Beyond The Meter

One of the high profile corporate renewable energy initiatives in the news recently has been the unveiling of Home Depot’s sustainability goals. Home Depot is among the increasing number of corporations working to make renewables a significant part of their energy procurement strategy. But for Home Depot, this new direction is not fueled by a desire to become sustainable, it began because it makes financial sense.

On this episode of Beyond The Meter, join host John Failla and his co-host Craig Noxon, Vice President for Enterprise Sales at REC Solar, a Duke Energy Renewables Company as they speak with Craig D’Arcy, Director of Energy Management for Home Depot. You’ll learn how Home Depot started its journey toward the use of renewables, how early successes encouraged further efforts, and how both the financial and efficiency benefits of using renewable energy has motivated them to keep innovating. The Home Depot approach is a great example of how corporations can make use of renewables and increase the bottom line at the same time.

Outline of This Episode

• [1:05] The background and role of each participant in regards to renewable energy
• [3:25] Home Depot’s energy management strategy: key elements
• [5:41] The primary drivers for the Home Depot strategy
• [8:13] Comparing Home Depot’s approach to the work other companies are taking
• [11:56] Technologies Home Depot has employed, renewable energy and otherwise
• [16:57] The role renewable energy plays for Home Depot
• [20:42] Which programs are most important to Home Depot (on-site or off-site)?
• [25:11] The challenge of getting stakeholders aligned toward renewable energy
• [27:50] Tips for those trying to get the attention of the C-suite for sustainability efforts
• [29:35] Advice about how to enlist the financial teams to help make the case
• [32:36] What’s next for Home Depot’s energy management strategy?
• [35:54] The challenges of energy providers in light of renewable energy innovation
• [40:36] Energy as a service concepts: Do they work for large companies?

Home Depot’s energy policy goals made renewables a viable option

There are typically three drivers behind a corporation’s consideration of renewables as an energy source. The first is cost, the second is the company's conscious sustainability goals, the third is increased resiliency. Craig D’Arcy says there is no doubt that all three play some role in Home Depot’s approach, but the first attempts to roll out renewable energy projects were entirely focused on the financial benefits. Renewables simply made financial sense for increasing efficiency and bottom-line profitability.

As early successes with renewable projects were achieved, they were able to investigate other options and expand their efforts toward sustainability. It's led to their sustainability story becoming public, which has driven internal excitement and created momentum for the renewables side of their energy procurement strategies. Listen to hear how Home Depot continues to consider all sorts of energy solutions, including any renewable sources that make sense for their broader goals.

3 critical elements of the Home Depot sustainability approach

When thinking of the renewable energy movement, it’s common to assume that those pushing for the use of renewables are only concerned about global issues of sustainability, but there’s incredible motivation to implement renewable energy alternatives from a variety of standpoints. In the case of Home Depot, three primary concerns guide their energy decisions...

1 - Foremost, Home Depot views everything they do through caring for their stores so that associates and customers are served well

2 - Every energy sourcing project must make sense financially

3 - Leadership has passed down a mandate to be as innovative as possible to accomplish those first two, which makes their decision-making technology and structure agnostic

Listen to hear how this plays out for Home Depot as Craig D’Arcy explains the fit renewable energy has in that three-pronged approach.

Sustainability efforts are significant for Home Depot's future

No company can survive if it is not profitable. Home Depot is no different, so it is no surprise to find out that from a financial standpoint, renewable energy is being leveraged to lower the net rates paid for energy throughout the company. But the benefits of renewable energy go far beyond that...

Home Depot has become known as a sustainability brand, recently releasing its own science-based targets for its energy policy, which includes renewable energy as a significant part. And finally, renewable energy provides natural, beneficial hedges against volatile energy pricing in the markets. Power Purchase Agreements with energy providers enables this hedge and has proven to be a huge benefit to the compa...

The use of renewable energy is becoming more and more common on campuses of higher education across the country - and it’s not surprising. Institutions of higher education are both massive consumers of energy and are in the business of learning and teaching. That combination makes them ideal laboratories for innovation and advancement in the field. This episode features two guests, Wolfgang Bauer and Scott Therian who are both uniquely positioned to speak on renewable energy sourcing and adoption as it relates to higher education.

Wolfgang is Associate Vice President for Administration at Michigan State University. His expertise is in renewable power systems integration, micro-grid management, energy efficiency, and sustainability. Scott is Project Development Manager at REC Solar. He has spent the last 9 years in the solar industry after getting his education in electrical engineering with a focus on power systems, energy conversion, and renewable energy sources.

Join these two renewable energy experts and host, John Failla of Smart Energy Decisions for this intriguing and insightful episode.

Outline of This Episode

• [1:05] What are the drivers for renewable energy sourcing in higher education?
• [8:02] How renewable energy fits into the energy sourcing of many colleges
• [18:09] Why are universities moving slowly on renewable energy sourcing?
• [26:42] Will higher education institutions accelerate the adoption of electric vehicles?
• [29:52] What is happening in universities by way of innovation to drive renewable energy adoption?
• [39:27] Final comments about the topic from Wolfgang and Scott

University campuses are huge energy consumers. Is it possible for them to use renewable energy?

Most universities are strategizing around the use of renewable energy, both in terms of how to use more renewable energy for current needs, and how to increase the use of renewable energy through establishing their own sources of RE in the future. But there are many variables that either support or hinder the adoption of renewable energy in these institutions. One advantage is that universities are long-standing institutions, which provides stability and inertia that can be leveraged toward multi-year contracts with renewable energy companies. But other factors can make the adoption of renewable energy difficult. For example, many land grant institutions have the advantage of developing their own sources of renewable energy, while urban universities have less opportunity to do so.

What are the drivers for adoption of renewable energy in higher education?

For institutions of higher learning, as well as other large organizations, a choice no longer has to be made between environmental sustainability and fiscal sustainability. Both can be a reality. The levelized cost of large scale solar and wind power is now lower than that of fossil fuel generated power - even with the historically low cost of natural gas that has resulted from Fracking. For this reason, cost is a significant driving factor for the adoption of renewables at universities.

But also, due to political pressure, more and more universities are making progressive pledges that put them at the forefront of the renewable energy stage. They want to be seen as leaders in this innovative and future-oriented field. As a result, many universities are entering into cooperative agreements with public sector organizations to bring the reality of renewable energy on campuses to life. Listen to hear more drivers for the adoption of renewable energy at these institutions.

Renewable energy sourcing is not something universities are used to doing

The adoption of renewable energy is challenging for universities because it’s not like any procurement the administration is used to doing. In the past, energy needs would simply be procured from the local utility company. But the marketplace has changed and now schools have many options for meeting their energy needs. And the transition from old energy models to renewable energy involves complex projects that require much foresight and planning, which often gets bogged down in committee.

But many universities are beginning to move in the right direction - restructuring their administration to take energy needs into account with the creation of administrative positions such as Director of Sustainability or Director of Energy and Utilities. As well, the use of third party consultants is becoming more commonplace since most universities don’t know exactly what they need when it comes to renewable energy. Consultants can help the institution get through the decision-making process in an informed way so they can more quickly lay out exactly what they need. This facilitates the bidding process to get adoption projects underway.

The complex and multi-faceted needs of universities are driving innovation

The fact that higher ...

Naturally, as any consumer technology becomes available to the public, the supporting infrastructure has to be developed right alongside. That’s the only way it can become widely accepted. But it’s not as easy as “just doing it.” There are many obstacles, financial hurdles, and unforeseen difficulties that have to be overcome. This conversation dives into what’s happening behind the scenes in the electric vehicle industry to deploy EV charging infrastructure across the nation.

John’s guests are Rob Threlkeld and Craig Noxon. Rob is the Global Manager of Sustainable Energy, Supply, and Reliability at General Motors, one of the many automotive suppliers leading the way toward EV adoption. Craig is Vice President of Enterprise Sales at REC Solar, a Duke Energy company. Both men have a unique insider’s view of what’s happening to build out the infrastructure necessary for wider adoption of electric vehicles, so be sure you listen to hear what’s happening on the ground across the nation to promote the purchase and use of electric vehicles.

Outline of This Episode

• [1:10] The increasing demand for EV infrastructure - what’s your experience?
• [7:06] Obstacles in meeting the demand for EV infrastructure
• [11:09] How retailers can benefit from investing in EV charging infrastructure
• [13:13] Can commercial fleet electrification over tax the electrical supply?
• [23:33] What could accelerate adoption of Electric Vehicle infrastructure?
• [37:00] The hot topics to watch over the next few years
• [41:00] Final thoughts: Corporations and individuals need to get involved

Retailers can gain an advantage by investing in the EV charging infrastructure

Many businesses across the country are noticing the advantages that can be had by providing EV charging stations at their retail locations. When customers who own and drive electric vehicles have a place to park and recharge their vehicles, it naturally follows they will frequent the establishment that provides it - and make purchases there.

In retail, that's worth noticing. Anything that produces a competitive advantage is going to be seriously considered. Rob and Craig discuss how retailers, automakers, and local utilities are working together to roll out more EV charging stations at retail locations, on this episode of Beyond the Meter.

20 million EVs on the road in the next 10 years - what will that require from an energy perspective?

As more and more electric vehicles hit the road, many things will be needed to both support and sustain the shift away from traditional fossil fuel vehicles. What sort of things need to happen?

• There will undoubtedly be Increases the amount of energy that utilities must provide for EV use

This means that infrastructure decisions and innovations must be top of mind now so that when the demand arrives, we’ll be able to meet it.

• The demand for EV infrastructure will continue to grow

It’s not only the electrical suppliers that need to think about the infrastructure - employers, corporations, and even leaders of municipalities need to be involved, taking steps to ensure that the technology and innovation needed to serve their communities is happening. Demand drives supply - always.

• Storage issues will need to be considered

Imagine the energy demand required if a good majority of those 20 million EVs were charging at the same time. Would the electrical supply chain be able to handle it? It will if we think ahead about the storage needs required to pull it off. We need to ensure that energy produced during “non-peak” times can be stored effectively and economically so that it can be used during peak times - which means the storage technologies we have now need to be improved and increased across the board.

EV as a service could be a very real possibility in the near future

One of the most encouraging things happening around the move to electric vehicles is that partnerships between energy suppliers and automotive manufacturers are being formed to help consumers make the transition. Plans are being considered to provide “EV as a service” to interested consumers.

These agreements - much like a traditional automotive lease - would potentially provide not only the vehicle, but also the energy, access to the charging infrastructure, and more. Imagine it - consumers would be able to receive a complete EV solution from one provider.

The “sharing economy” might come into play as well. Conversations are happening around the idea of “stranded assets” such as fully charged electric vehicles that are sitting idle, being used to provide electricity back to their local utilities, for other users to “borrow,” and more. Listen to learn some of the great ideas being considered.

What to expect 18 months from now

The move to EVs is happening rapidly. That means m...

When considering both the future of the planet and the future of both industry and human thriving worldwide, the renewable energy outlook is of paramount importance. Renewable energy is of vital concern simply because cultures worldwide consume energy as part of everyday life. Renewable sources of energy are of such great importance for two main reasons:

1. Renewable energy sources, by definition, never deplete
2. Renewable energy options provide a way for humanity to step away from environmentally damaging fossil fuels

This conversation is an exploration into the renewable energy outlook for the near future, led by Smart Energy Decisions founder, John Failla. John speaks with Chris Fallon, Vice President of Duke Energy Renewables and Kyle Harrison of Bloomberg NEE about the future of renewable energy through the lens of varied approaches and ideas. You’ll receive a broad overview of the current state of the renewable energy industry, hear the challenges being addressed currently, and gain an optimistic perspective relating to what can be done to make renewable energy more available and useful in the future. And keep reading below to see some of the specific topics addressed in this conversation.

Outline of This Episode

• [2:20] Why a tangible commitment to sustainability goals is the first step for companies
• [5:15] What’s happening with companies regarding ESG investing and Green bonds?
• [9:18] The economics of renewable energy: a double-edged sword
• [13:18] Community Solar: the opportunities and challenges
• [16:38] The future of large scale virtual Power Purchase Agreements
• [22:22] Utility green tariff programs: what’s the future?
• [27:33] Retail supply products in the renewable energy outlook
• [30:56] Are there opportunities to integrate RE procurement with other initiatives?
• [33:00] What might accelerate or slow the growth of renewable energy?

The renewable energy outlook relies heavily on companies

Companies, both large and small, are by far some of the largest consumers of energy worldwide. That means if companies make a commitment to renewable energy use rather than traditional fossil fuel use, the renewable energy industry will take a giant step forward. As of 2018, 42% of companies have stated both renewable energy and greenhouse gas reduction goals. Today, just over 190 companies have set target dates by which they intend to offset 100% of their energy consumption with renewable energy. Those are promising facts, which will require aggressive emissions reduction steps - and buying clean energy is one of the best ways to do so.

Listen to hear the stories of companies that are striving toward their renewable energy goals and to understand the challenges they face in doing so.

The economics of renewable energy: a double-edged sword

Two of the most obvious and in-demand sources of renewable energy are wind and solar. Costs have come down in both of those branches of the industry, which has made clean energy more attractive for corporate buyers. But though the low cost makes renewable energy very attractive, there are difficulties to be overcome. Kyle Harrison refers to this conundrum as a double-edged sword.

Both wind and solar operate at zero marginal cost - which means that in some markets there is an over-saturation of renewable energy produced by solar or wind generation. When this happens, prices are depressed, which in turn decreases the profitability of the installations generating that power. When that’s the case, it makes signing energy procurement deals in those particular markets that work financially for both provider and consumer, difficult at best.

In this conversation, you’ll also learn how some corporate customers are looking at renewable energy as a risk mitigation play - taking advantage of the tax incentives offered by the government for using renewables by trying to lock in the benefits of low rates for a longer period of time.

The opportunity of community solar

When we talk about “Community Solar” projects, we’re referring to local solar facilities that are shared by multiple community subscribers (companies in most cases.). Those subscribers receive credit on their electricity bills for their agreed-upon share of the power produced. It’s a model of solar production and usage that is being adopted nationwide. Companies that participate receive the flexibility of an on-site project under purchase or lease agreements.

Not only does a subscriber company benefit by transferring some of their energy supply to renewable energy they also receive the benefit of having a good PR story to tell to the media and customers and shareholders. Unfortunately, Community Solar is not an effective way to meet the overall energy demands of most companies.

Listen to hear why Community Solar is one of the fastest-growing segm...

Renewable energy is a big topic these days - and it will undoubtedly become a bigger topic as we move further into the 21st century. It’s not just that we want to develop more efficient and environmentally friendly energy solutions, it’s that we must. Our future and the future of our planet depend on it.

I’m John Failla, Founder and Editorial Director at Smart Energy Decisions, the first web-based information resource dedicated exclusively to addressing the information needs of commercial and industrial electric power customers. Our goal is to serve as a catalyst for change in support of the dramatic energy transformation taking place in the electric power market. To that end, we want to elevate the conversation around the topic of renewable energy, and this podcast, produced in partnership with Duke Energy is one way we are doing that.

Join us for “Beyond The Meter” - a series of conversations highlighting what’s happening in the field of renewable energy. In this series, we’ll discuss how companies and municipalities are beginning to transition, how innovation and technology are making it possible, and what YOU can do to join the movement. You can subscribe to these conversations in a number of ways, which you can find at the bottom of these notes. Thank you!

Outline of This Episode

• [0:32] Who is Craig Noxon?
• [1:16] The three “C”s behind the use of renewable energy in corporates
• [6:22] The increase in use of distributed energy sources
• [12:35] The utility companies are a significant part of the renewable energy transition

How and why corporations need to transition toward renewable energy

Corporations are under increasing pressure due to the global competition they face. The rise of the internet alongside other digital technologies enables competition from around the world to reach out to their markets. For this reason, the leadership at corporations across the world are discovering that they need ways to do more with less.

When it comes to doing more with less, energy has been a bit stubborn. It’s been hard to reduce costs in that area and still provide needed resources, but all that is changing, for a few very encouraging reasons...

1 - Policy changes have occurred that allow for more choice. Corporations are realizing that the loggerheads they once experienced when choosing utilities and energy solutions are no longer the same.

2 - Innovation in both financial and technological ways are allowing for options that didn’t exist before. Wind and solar are now able to compete with the traditional energy grid to drive down the cost per kilowatt hour. Corporations are finding this very appealing. Imagine the difference it could make to a manufacturing company to reduce its energy costs company-wide!

Control and Costs are huge considerations when it comes to renewable energy

The rise of renewable energy has had a wonderful impact on the ability of corporations to exercise greater control in how they go about using energy. They can now manage risk more effectively and plan for the future due to the options available - EVs, solar, microgrid storage, and more. These allow businesses to have a greater degree of resiliency and increased capacity. The increased usefulness of storage technologies is the glue that helps the distributed generation technologies work together.

It’s encouraging to realize that there is not a single technology that makes distributed energy solutions work. The technologies that exist are able to work together in ways unheard of previously.

Utility companies play a huge role in making the transition to renewable energy

It’s to be expected that a transition of the magnitude needed in the energy industry is going to take time and require many people and entities to participate. One of the beautiful things is that we now have solutions beyond what a typical regulated utility company can provide. For example, Duke Energy is the owner of REC Solar. Why? It gives Duke access outside its typical markets and the potential to own and operate energy assets long term. More and more partnerships like this are happening and it’s serving the public good by utilizing the strengths of the long-standing energy companies alongside the innovations found in renewable energy technologies like wind and solar.

Subscribe to this podcast to hear more about what’s happening in the industry, what you can expect to see in terms of innovation and adoption as time rolls on, and how you can be part of the renewable energy revolution.

Resources & People Mentioned

• REC Solar
• Wal-Mart’s Project Gigaton