Revolutionising Corporate Ownership of Renewable Energy

Hello, Champions of Net Zero!

In an era where energy prices are increasingly unpredictable, businesses worldwide are grappling with the question: Can they afford to produce their own renewable energy? However, a more pressing inquiry emerges: Can they afford not to? Bruce Woodman, Managing Director of Pure Energy Professionals (PEP), a leader in low-carbon energy solutions, sheds light on the transformative benefits of Corporate Renewable Energy Ownership (CREO) and presents a practical pathway for securing affordable, clean energy for the long haul.

As companies strive to shield themselves from the impacts of fluctuating global energy markets, the urgency to create a sustainable future for employees, shareholders, suppliers, and customers becomes paramount. For many organisations, the answer lies in embracing Corporate Renewable Energy Ownership.

What is Corporate Renewable Energy Ownership (CREO)?

Corporate Renewable Energy Ownership, or CREO, refers to a business model where companies generate their own clean energy for on-site consumption. This approach not only helps reduce reliance on grid electricity and potentially gas purchases but also empowers businesses with greater control over their energy supply. By investing in in-house renewable energy, firms can better manage their financial forecasts and mitigate the risks associated with unexpected price surges. Additionally, this strategy paves a direct path toward reducing carbon emissions, aligning with the ambitious net-zero targets many organisations are striving to achieve.

CREO: A Commitment Beyond Greenwashing

Investing in substantial renewable energy generation—primarily through large-scale wind and solar photovoltaic (PV) systems—sends a clear message about a company’s dedication to sustainability and its long-term vision. However, a critical question arises: Does CREO provide tangible financial benefits? For businesses located near robust wind and solar resources (within a 5 to 10km radius), the answer is almost certainly affirmative. The cost of generating energy on-site and transporting it for use is likely to be lower than purchasing from the grid, offering a more predictable pricing structure well into the future. Moreover, this energy is genuinely green.

While the UK and other nations are under legal obligations to achieve net-zero emissions within the next 25 years, individual businesses must also set their own targets—regardless of whether national systems can decarbonise within the same timeframe. Instead of wondering if a business can afford to invest in renewable energy, the more relevant question is: Can it afford not to?

The quality of nearby wind or solar resources significantly influences energy costs, alongside the capital costs associated with renewable energy projects. If businesses can secure long-term financing, they can shield themselves from year-to-year price fluctuations, enjoying the benefits of low-carbon energy for the foreseeable future. This stability allows companies to maintain better control over their energy budgets and, in turn, insulates them from the volatility of energy markets.

Understanding the Financial Landscape of Renewable Energy

It’s vital to recognise that renewable energy infrastructure requires substantial capital investment. As a result, the funding necessary for large-scale decarbonisation may not always be readily available from internal resources. Typically, renewable energy projects are financed through limited recourse loans, which are secured by the project’s cash flows and, ultimately, the assets themselves, rather than through a corporate guarantee.

Starting a CREO Strategy

Embarking on a CREO strategy begins with a thorough understanding of an organisation’s energy demand and specific site usage. This foundational knowledge enables companies to assess the appropriate scale of energy generation and identify suitable locations for on-site or nearby renewable energy installations. The process usually starts at the site with the highest energy consumption, where a quick assessment of its potential for renewable energy generation can be conducted. If the site proves unsuitable, the next largest consumption point will be evaluated.

Once a viable site is identified, an initial desktop study is performed to cover key development issues, including design options and potential risks. If the site appears promising, landowners—many of whom welcome the prospect of long-term lease payments—are approached. Projects that directly support local businesses, investment, and employment are generally more favourably received by communities than those backed by large, faceless national or international power developers.

Following the planning phase, the project can progress to financing, procurement, construction, and eventual operation. Engaging a skilled and experienced renewable energy generation partner ensures a seamless process and optimal value, encompassing the necessary permits, land agreements, and grid connections.

Learning from CREO Pioneers

Connecting renewable energy generation directly to a company’s premises is not a novel concept. Many early adopters, such as AG Barr, Asda, and Tesco, have successfully navigated this path. A standout example is IKEA, which has partnered with PEP as its renewable energy specialist for over 15 years across project lifecycles in North America, Europe, and the UK. The Swedish furniture giant has embarked on an ambitious multi-billion initiative aimed at achieving 100% renewable energy consumption throughout its value chain. Additionally, Ingka Investments, IKEA’s largest franchise holder, has committed over €4 billion to renewable energy projects thus far.

Moreover, PEP has played a vital role in Aviva Investor’s foray into renewable energy generation, providing investment support, construction, operations, and asset management for numerous projects across 25 wind sites in the UK.

Conclusion: A Sustainable Future Awaits

The journey toward Corporate Renewable Energy Ownership is not merely a trend; it represents a crucial step toward a sustainable future. As businesses increasingly recognise the financial and environmental imperatives of generating their own clean energy, the question shifts from whether they can afford to invest in renewables to whether they can afford to ignore the opportunity altogether. By embracing CREO, companies can not only safeguard their financial futures but also contribute meaningfully to the global efforts to achieve net-zero emissions. The time for action is now—let us lead the way toward a sustainable, prosperous future for all.

This article first appeared in the April 2025 issue of Energy Manager magazine. For more insightful articles and updates on the journey to net zero, subscribe to our newsletter today!