by 
Ken Silverstein for Forbes

Smaller enterprises want energy developers to spread the green, allowing them to get in on the renewable wave rolling through America. The dynamic has made it easier for larger corporations with more demand to buy wind and solar electricity but it has nudged out the less brawnier brands.

The guys at Google and Facebook, for example, are stimulating the need for wind and solar energy that they are using to feed their electricity-starved data centers. The developers of those energy projects, in return, are getting solid customers that are buying their output at a fixed price over a certain period of years.

But individual commercial and industrial customers aren’t generating the type of demand that can propel big energy projects into the market. Now, though, that may change. The same so-called power purchase agreements that are used to attract the likes of Microsoft, Intel and SAP can also be parceled out to smaller businesses, albeit in much smaller blocks of energy and for much shorter time frames.

“We connect the corporate community to power purchase agreements,” says Paul Schuster managing director for Altenex, a unit of Edison Energy, in an interview. “We have noticed those larger-to-mid-sized energy users need to achieve cost efficiencies, which can be done by buying smaller blocks of renewable electricity.”

A traditional power purchase agreement, for example, might require a company to buy 100 megawatts and it would last 20 years. But the contract now offered to the smaller players might be for 10 megawatts over 10 years.

So how does all this work? A wind developer can’t go forward until it knows that it can sell its output into the market at a fair price. Because there are tax breaks for both building the project and buying the output, developers have proved able to sell that product into wholesale markets.

Let’s say it is an insurance company or a bank that buys the bulk of the wholesale power before it would be resold into retail markets: They often line up the major corporate outlets or Internet giants and contract with them to sell the energy at fixed prices over a set number of years. What Altenex is doing is going to that insurer or banker — in this example — and offering to market smaller blocks of electricity to commercial and industrial businesses.

“The return on equity should be infinite,” says Schuster. “Customers, in fact, are not putting down any upfront capital. Hopefully, they are buying renewable energy at the same cost or lower cost than they are paying for fossil energy.”

Is the corporate green market on fertile ground? PriceWaterhouseCoopers says that it has grown over the last 24 months and that it will continue to expand. Seventy-two percent of the companies it surveyed said that they are pursuing renewables, noting that they want to be more sustainable and to use green energy to hedge against volatile energy prices.

Green electricity sales in the form of voluntary power purchase agreements grew by 4% in 2015, adds the National Energy Renewable Laboratory. Contracted green power sales from those deals grew by 13% in 2015, it notes, and now total 10.2 million megawatt hours.

The larger companies are the main drivers with the likes of General Motors, Hewlett Packard, Johnson & Johnson, Tata Motors and Walmart setting a goal to run their entire operations using green energy. That includes a number of different options — everything from investing directly into deals to buying their electricity through power purchase agreements.

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By Steven Shepherd

*We're looking for content providers, videographers, TV hosts, writers, indie producers, media sales reps for video-based web network.* Steven: Extensive experience in publishing, branding, PR, marketing, copy-writing, web development and web-based and broadcast video production, photography and event production. Worked with nonprofit organizations of all sizes to develop web sites and mobile fund-raising campaigns. Varied client list includes: • Movie Studios • Auto Dealers nationwide • Environmental groups, ministries & churches. • NASCAR and Super Bowl champion to a NY Times #1 Bestseller • Professional golf to televised beauty pageants. • Consumer Advocacy to Campaign Fundraising Software Proficiencies: Adobe CC (Photoshop, Illustrator, Premiere Pro, After Effects), Web Development (Wordpress), SEO, E-mail platforms, Microsoft Office, Salesforce. 2011: Had such a great time developing the MobileCause.com site and helping the team grow to become the leading software for mobile fundraising, that we decided to branch out. Now we can offer mobile web sites and mobile fundraising for nearly any 501c-3 or even political candidates. 2009: New site and platform launched: MobileCause.com. Text Donations and Audience Response Systems via mobile and Twitter. Clients include: Charity Water, EarthDay DC, Causecast, National Breast Cancer Fdn, Ovarian Cancer Research Fdn, Union Rescue Mission, Virgin Mobile, Invisible Children, Big Brother Big Sisters, .... 2008: Launched new marketing and web consultancy, ZFARI in 2008. (www.zfari.com). The primary focus is to help businesses and non profit corporations succeed by strengthening and extending their brand to customers through the internet (web development and marketing) and new technologies. Most recent projects include concepting & developing mobile marketing strategies and new revenue production models for clients through MobileCause.com. 1st VP, Advertising Federation of Central Oregon (www.adfedco.org)

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