Profitability
Profitability: it makes good business sense to transform your organisation to a resource efficient and low carbon economy.
Clean energy is now mainstream. The market reached over $200 billion in 2010, up 25% on 2009. Your business can reap highly attractive returns.
A company that invests in clean renewable energy for its own use can expect attractive economics.Because clean energy is such a vital resource, most leading countries have put policies in place to encourage its development.In many cases this is not a simple government subsidy, but rather a series of measures. These may include accelerated tax allowances, carbon levy avoidance, and commonly a ‘green credit’ paid for by the electricity supply companies: the polluter pays being the key principle.
Clearly the lowest cost way for a company to acquire clean power plant is to develop it itself, on its own land. Green Peninsula has helped a number of companies to go down this route by providing guidance and co-development support. Other companies opt to buy operating plant, which of course carries a premium as it has been de-risked. Again, Green Peninsula is very active in providing due diligence and valuation support to a number of clients. An alternative is to purchase developed sites that are ready to be built. Some companies choose to develop projects on their own land and then sell them but with an agreement to buy back the clean electricity.
The key thing is to consider what strategy works best for you, and only then to implement it. In almost all cases, returns on capital are likely to be surprisingly attractive. The worst option economically is usually to just rely on buying green electricity from other companies: low supply and increasing demand mean that prices are high and are set to rise further in future.