Mubasher: Corporates in 75 countries have actively sourced 465 terawatt hours (TWh) of renewable energy in 2017, according to a new report by the International Renewable Energy Agency (IRENA).

This amount is considered close to the overall electricity demand of France, with the continued decline in the costs of renewables, the report suggests.

“Corporate demand will continue to increase as companies seek to reduce electricity bills, hedge against future price spikes and address sustainability concerns,” IRENA’s report said.

Renewable energy sourcing by companies in the private sector is expected to be a key factor in the world’s pursuit of a sustainable energy transformation alongside with the objectives set out in the Paris Agreement, based on Corporate Sourcing of Renewables: Market and Industry Trends, the first global assessment of trends and policies in corporate sourcing of renewables.

“Environmental and sustainability concerns, social responsibility and reputation management and economic and financial objectives are the three primary drivers of corporate sourcing,” according to the report.

Of the companies analysed in the report, only 17 per cent have a renewable electricity target in place. Three-quarters of those targets will expire before 2020, representing a significant opportunity for corporates to develop new medium to long-term renewable energy strategies and targets that factor in improvements in renewable energy technology and cost declines

It is noteworthy that the report is a contribution to the Clean Energy Ministerial “Corporate Sourcing of Renewables” campaign, co-led by China, Denmark and Germany and co-ordinated by IRENA.