Why should organization source their energy from renewable sources?

RE100 launched in 2014 is a global initiative by top business organizations committed to transit to complete renewable sources and achieve a zero-carbon electricity grid by 2040. Over 300 members of RE100 initiative come from different sectors like manufacturing, fashion, pharmaceutical, etc. These companies have operations in various countries including India. India has seen a growth in renewable energy capacity from 15 GW in 2010 to more than 100 GW at the end of 2021. The government of India has a plan to install 523 GW renewable energy capacity by 2030. Various Indian companies are grabbing this opportunity and planning to go 100% renewable in near future (there100.org). Companies like Infosys, ITC are already sourcing more than 30% power from renewable sources. Businesses like Mahindra, Dalmia Bharat Cement, Nestle are also part of RE100 initiative. At present more than 70% of the top 100 corporates in India are moving towards renewable energy (wwfindia.org). It is high time for small organizations to move in this direction and achieve 100% renewable which not only has environmental benefits but also leads to lower the electricity bill.

Considering the rise in electricity bills and price fluctuations, organizations can save money by investing in renewable power sources like the installation of solar panels, wind turbines, and other forms of renewable energy. Based on their investment, the percentage of savings will improve thereby covering a significant part of the energy needs.

To achieve the target of going green initiatives by the government of India, the organizations must invest and utilize renewable power. The aim is to reduce the use of fossil fuels and save the environment. This can make the organization more energy-efficient which can also be economical in long run. The surplus energy can be transferred to the grid so, it can be an additional revenue source that can offset the installation costs. Also, in terms of a power outage, the chance of experiencing downtime will come down drastically which considerably saves a lot of money. The upfront costs of setting up a renewable power source are reducing with time. Since 2009, the upfront costs of both wind and solar power plants have been reduced by 68% and 86% respectively. So, it is clearly profitable for organizations to source their energy needs from renewable.

In 2015, the Paris Climate change agreement was created in response to the global threat of climate change. Many organizations across the world have started to invest part of their assets towards Renewable Energy thereby contributing towards the objective of the agreement. In India, the government has set a target of installing 175 GW of Renewable power capacity by 2022, which comprises 100 GW from solar, 60 GW from wind, 10 GW from bio-power, and 5 GW from small hydropower (mnre.gov.in).

As renewable energy technologies are getting more and more efficient each day, businesses can harness more energy than the targeted power over a period. The above initiative by various government greatly boosts the investor’s confidence and motivate the customers towards the environment thereby meeting the sustainability criteria. It also enhances the company's valuations and creates a revolutionary impact in the market (www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world-ergy.html).

In conclusion, organizations adopting renewable power sources can greatly help combat climate change and prevent public health issues that are associated with burning fossil fuels. This significant step taken by the organization can provide great hope for the future generation in creating a safe and greener environment.

References

1.    https://mnre.gov.in/ - Ministry of New and Renewable Energy, Govt. of India.

2.    https://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world-energy.html - BP statistical data on Renewable Energy.

3.    https://www.there100.org

4.    https://wwfindia.org