Commercial & Industrial Demand is Driving Utility-Scale Solar Rollout

by | Mar 11, 2022

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A midwestern retailer and grocery store chain is going big on utility-scale solar — clean energy that connects to the grid. Grand Rapids, Michigan-based Meijer says that its power purchase agreement with one of Duke Energy’s subsidiaries will allow it to meet its carbon reduction goals. 

Corporate America is leading the charge regarding investments in renewable energy and green technologies. Generating the market demand for 21st Century tools and fuels reduces financial barriers for smaller commercial and industrial enterprises that also want to do their part.

“At Meijer, we are motivated to make an impact in the local communities we serve, and beyond, by doing our part and taking the necessary steps to reduce carbon emissions,” says Meijer Chief Executive Rick Keyes. “Meijer has made significant progress over the years to integrate sustainability into our daily operations. We’re committed to these ongoing efforts and a project like this brings us closer to our industry-leading sustainability goals.”

The retailer has agreed to buy a portion of the solar output for 15 years from Duke Energy Sustainable Solutions. The aim is to remove 103,000 metric tons of CO2 from Meijer’s operations. The long-term pact allows Duke to build the utility-scale project, which has broken ground. It is expected to be completed by the end of 2022. Each year, the so-called Pisgah Ridge Solar project will generate approximately 200,000 megawatt-hours of energy.

Meijer’s goal is to reduce its CO2 releases by 50% by 2025, from 2014 levels. It will focus on energy efficiency and renewable energy procurement to meet this commitment. It will also pilot innovative technologies, including an energy-saving geothermal project for refrigeration next year. It says that it has cut its emissions by 17% since 2014 — even as it has opened 52 new stores and distribution facilities. That is equal to a 30% reduction in CO2 emitted per square foot.

Companies such as General Motors, Johnson & Johnson, and Proctor & Gamble are part of the Clean Energy Buyer’s Association — all centered on achieving net-zero goals. That group says that energy customers in the commercial and industrial sector have contracted to purchase more than 42,000 megawatts of new capacity through U.S.-based projects.

The International Renewable Energy Agency (IRENA) reports that utility-scale solar costs have fallen by 82% since 2010. “Renewable investments are stable, cost-effective, and attractive, offering consistent and predictable returns while delivering benefits to the wider economy,” said Francesco La Camera, IRENA’s director-general.

Grid Upgrades Necessary 

The commercial and industrial sectors consume more than 60% of the electricity in the United States. And institutional energy consumers are the main drivers behind the green-tech movement and greenhouse gas reduction targets. The clean energy group says that one of its objectives is to drive down costs. Wind and solar energies have dramatically fallen over the last decade — thanks in part to corporate demand and more significant economies of scale.  

“Renewable energy assets like the Pisgah Ridge Solar project contribute to a cleaner, stronger economy, and help create a more diverse energy infrastructure. We’re pleased to be working with Meijer to create jobs, strengthen the local economy, and generate cleaner energy, while also helping them address their carbon reduction goal,” says Chris Fallon, president of Duke’s Sustainable Solutions.

If utility-scale solar makes headway in corporate markets, the transmission grid will need to advance. Decarbonizing the grid means going electric —driven by the expected demand for electric fleets and the growth of renewables. It’s also guided by the development of energy efficiency standards and demand response programs. The shift into high gear necessitates new investment.

And that means adding things like sensors to monitor equipment and prevent grid overload. More sales could pay for the upgrade as electricity demand grows. However, just how that is funded remains an open question. The U.S. Department of Energy’s grid reliability study says that the current U.S. grid can be prepped for additional renewables. But by 2030, more long-distance, high-speed transmission lines will be necessary.

“This is the decisive decade for climate action and especially for decarbonization of the power sector,” says Miranda Ballentine, chief executive of the Clean Energy Buyer’s Guide. “To achieve a net-zero economy worldwide by 2050, the United States must lead. And the power sector must accelerate toward a 2030 timeline as electrification of other industries will be driving up power use.”

While Meijer’s attention is on reducing carbon emissions, companies like McDonald’s focus on community development; making clean energy investments is good for people who buy its food. In 2021, the high-tech industry made the most notable investments in the clean-tech sector: Amazon, Meta, Verizon, Google, and Microsoft led the pack. They were followed by Plug Power, Pfizer, Target, PepsiCo, and McDonald’s. 

Corporate demand for green products and services leads to better and cheaper technologies, all of which are becoming more accessible to more commercial and industrial users. And power purchase agreements are a major catalyst — evidenced by the deal reached between Meijer and Duke. 

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