How the Green Electricity Revolution can Join Sustainability’s Bottom Line

Electricity generated from renewable resources like wind and solar is known as “green electricity” to those familiar with sustainability efforts. The reality is there are no more excuses for enterprises not to implement green electricity practices. With the US forecasted to add nearly 500 GW of renewable energy capacity through 2030, the availability and consumption of green electricity across the US is unlike anything we’ve seen in a long time.  

Despite this, we’re in an era where many organizations are still unprepared for the upcoming reporting directives and regulations that are driving the world’s sustainability efforts forward. With greenhouse gas (GHG) emissions reaching an all-time high of 37.4 billion tones (Gt) in 2023, the lack of intentional effort should propel those who have yet to adopt green electricity in their business.  

Why Green Electricity Matters 

For many businesses, transitioning to only renewable energy is a strategic imperative that will not only deliver environmental benefits, but create a competitive advantage and drive long-term profitability. 

The abundance of clean, natural resources that produce minimal to no GHG emissions can give businesses practically unlimited access to a new source of power that addresses Scope 2 emissions. Investing in green electricity can further help companies achieve more stable energy agreements and mitigate the unpredictability of electricity prices, while also diversifying their energy supply, reducing the dependence on imported fuels, and driving new industry standards. 

We’re now seeing a drop in the cost per kilowatt hours, and in most cases, cheaper than traditional fossil energy sources. While the current administration hasn’t confirmed specific elements of clean energy incentives or tax credits under laws such as the Inflation Reduction Act and the Infrastructure Investment and Jobs Act, it’s typical to see an offset of costs from switching from fossil fuels to clean energy.

It has become much more cost effective to erect solar farms, invest in wind power, and other green energy providers because these incentives serve the entire value chain – from the green electricity supply chain itself, to manufacturers, all the way down to the residential, commercial, or end user.  

Green electricity’s role in sustainable practices and climate tech 

Clean energy, renewable energy, green electricity – however you prefer to refer to it, they are all synonymous in the combat against climate change. Whether it’s from the sun, wind, or tides, over 20% of all US electricity is generated by renewable, green electricity and there is no time more appealing for organizations to include it into their mix. However, government regulation and incentives are not enough to drive the sustainability agenda. Market-based solutions to develop and use green electricity must accelerate in all industries to drive the right behaviors. Some examples include: 

• Manufacturing: New designs for solar thermal systems are being deployed to create a more cost-effective and greener energy supply for the mass amounts of energy required to turn raw materials into products.  

• Agriculture: Implementation of solar-powered irrigation systems is reducing the reliance on fossil fuels and overall operating costs.  

• Transportation: With this industry emitting more GHG than any other, the adoption of electric vehicles and charging stations powered by green electricity is critical to decarbonization. 

• Technology: Companies are investing in climate technologies to not only optimize their energy use but further reduce their carbon emission through the integration of smart grids and Internet of Things (IOT) technologies.  

The power grid plays a fundamental part in green electricity’s role and adoption. Businesses and operators will need to strategize their approaches and tools to both meet the growing demand for renewable energy sources and how to successfully integrate them into their value chain.  

For instance, because so many grids are designed for fossil fuel generation, the current network infrastructure and physical grid capacity is not sufficient to accommodate the growth of green electricity. Network reliability is also a challenge operators must overcome because no matter the percentage of operations that rely on renewable energy sources, we’re still dependent on the elements – driving both the need and opportunity to diversify energy supply.  

The Future of Green Electricity 

The time is now to accelerate efforts towards net zero. Other countries such as Spain currently have almost 60% of their electricity generated by renewable sources, and there’s no reason why the US cannot achieve the same. While this scenario is dependent on the continued support for green electricity, emerging technologies and the explosive growth of AI has industries strategizing how they will meet this massive surge in energy demand.  

Many businesses are exploring the incorporation of nuclear power and small nuclear reactors (SMR) to assist in meeting demand due to its near zero carbon dioxide or GHG emissions, plus its ability to function without being tied to a power grid. Nuclear power, of course, has its challenges ranging from a higher price point, lack of established regulatory frameworks, complex waste management, to public acceptance.  

Although there will be a need for significant technological development and supply chain reliability, nuclear energy currently makes up almost 19% of our electricity generation and we will see nuclear energy become a much larger share of green electricity in the next few years. 

Investors, consumers, and employees are increasingly interested in a stronger commitment to sustainability and renewable energy adoption throughout the supply chain. The opportunity to diversify the energy portfolio, and provide greater flexibility to adapt to new requirements and innovations, transitioning to green electricity is a smart next step for forward-looking companies who want to secure the first-mover advantage.  

Though there are significant challenges ahead, there are also unprecedented opportunities for industry leaders to position their companies at the forefront of the green electricity revolution.