Renewable Energy Procurement

Renewable Energy Procurement

Renewable Energy Strategies That Advance Business and Sustainability Goals.

Introduction

Renewable Energy Solutions Goes Beyond Buying Green Power

Organizations face growing expectations from customers, investors, regulators, and employees to advance renewable electricity objectives, manage market-based Scope 2 emissions, and demonstrate progress toward sustainability commitments. Achieving these goals requires a strategy that balances environmental attributes, financial performance, operational priorities, and reporting requirements.

With options ranging from renewable retail electricity supply and Renewable Energy Certificates (RECs) to community solar, power purchase agreements (PPAs), and on-site generation, selecting the right combination can be complex.

Tradition Energy helps organizations compare and combine renewable energy products based on cost, risk, contract structure, environmental attributes, and reporting requirements. Our independent approach helps clients develop practical procurement strategies that align renewable electricity objectives with broader energy and financial priorities.

Renewable Energy Experience in Numbers

Understanding Renewable Energy Procurement

Organizations pursue renewable energy for a variety of reasons, from reducing emissions and meeting sustainability commitments to controlling costs and responding to stakeholder expectations. But renewable energy procurement is not one-size-fits-all. The right strategy depends on an organization’s environmental objectives, financial priorities, operational requirements, and reporting obligations.

Renewable Electricity Objectives

Advance renewable electricity goals and address market-based Scope 2 emissions through eligible renewable energy procurement instruments.

Project Development & Impact

Evaluate opportunities to support new renewable generation, recognizing that project support alone does not establish additionality.

Budget Considerations

Balance sustainability objectives with financial performance and long-term value.

Reporting & Disclosure

Align environmental attribute ownership, REC retirement, and procurement documentation with applicable Scope 2 accounting and disclosure requirements.

Strategic Alignment

Align renewable procurement with broader energy, financial, operational, and sustainability objectives.

Renewable Energy Procurement

Selecting the Right Renewable Energy Strategy

Renewable Energy Certificates (RECs)

RECs represent the environmental attributes of renewable electricity, with each certificate generally corresponding to one megawatt-hour of generation. RECs can be purchased separately or bundled with renewable electricity products, providing flexibility to support renewable electricity objectives without changing physical electricity supply. REC eligibility, ownership, vintage, geographic criteria, tracking, and retirement are important considerations for credible market-based Scope 2 reporting. Purchasing RECs does not, by itself, demonstrate additionality or guarantee new renewable project development.

Community solar allows organizations to participate in shared solar projects without installing equipment on-site, typically receiving utility bill credits that may reduce electricity costs. Environmental benefits depend on program structure and REC ownership; subscribers do not automatically receive the project’s RECs. Community solar can complement other renewable procurement strategies.

On-site solar can reduce purchased electricity and provide long-term cost benefits, while off-site arrangements offer access to renewable projects without on-site installation. Financial structures, physical delivery, and environmental attribute ownership vary by agreement. On-site solar alone generally does not provide backup power during outages; resiliency requires appropriately configured storage and islanding capabilities.

VPPAs are long-term financial agreements that can support renewable project development without physical electricity delivery. They involve wholesale market settlement exposure and may include REC transfers, depending on contract terms. Tradition helps clients evaluate project economics, financial risks, environmental attributes, and how VPPAs fit within a broader renewable procurement strategy.

Why Organizations Choose Tradition Energy

The right renewable strategy may involve more than one product. An organization might combine competitively sourced renewable electricity with RECs to address remaining market-based Scope 2 requirements, while evaluating solar or long-term PPAs for additional financial and sustainability objectives. Tradition Energy helps clients assess these combinations, understand tradeoffs, and build a coordinated strategy across their energy portfolio.

Market Intelligence

Understand renewable electricity markets, product pricing, environmental attribute requirements, and evolving procurement opportunities before committing to a strategy.

Procurement at Scale

Draw on Tradition Energy’s extensive procurement experience and market relationships to evaluate renewable energy opportunities alongside your broader energy strategy.

Greater Supplier Competition

Compare competitive renewable energy offers based on price, contract terms, risk, REC attributes, and alignment with your organization’s sustainability objectives.

Integrated Energy Strategy

Combine renewable electricity supply, RECs, solar, and long-term procurement agreements into a coordinated strategy that supports financial priorities and market-based Scope 2 objectives.

Let’s Talk About Your Renewable Energy Strategy

Connect with a Tradition Energy advisor to compare renewable energy options and develop a procurement strategy that aligns your renewable electricity objectives with your financial and operational priorities.

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Renewable Energy Procurement