Executive Summary
In support of its ambitious climate strategy and net zero transition, a major consumer and household goods company partnered with 3Degrees to make progress toward its decarbonization targets. This collaboration resulted in two virtual power purchase agreements (VPPAs): a Texas solar project in the US and a Finnish wind power solution in Europe. These landmark agreements enabled the company to source more renewable electricity than its annual usage in the US and secure renewable coverage in Europe, supporting its net zero goals.
Background
With a commitment to net zero greenhouse gas (GHG) emissions by 2040 and 100% renewable electricity across its global operations by 2030, this consumer goods company set ambitious sustainability objectives. With the deadline for its renewable electricity goal quickly approaching, the company focused on achieving it through the execution of global virtual power purchase agreements (VPPAs). Facing regional differences and market complexity in both the US and EU, they turned to 3Degrees for innovative energy procurement strategies capable of meeting its climate targets.
Challenges
Given the broad scope of the renewable energy strategy and the nuances of each region, internal stakeholders needed expert training to ensure informed decision-making.
Both VPPA negotiations took place amid significant volatility in renewable energy markets, requiring strategic negotiations, a robust implementation strategy, expert guidance, and risk management.
Matching renewable supply to operational loads and future growth posed planning and monitoring complexity in both regions.
In Europe, integrating multiple markets while aligning with the AIB (Association of Issuing Bodies) rules required careful structuring, particularly to enable future volume increases.
How we helped
Stakeholder education:
Recognizing the complexity of engaging a large enterprise, we provided targeted training sessions for multiple teams—from foundational VPPA concepts to advanced procurement strategy. This approach created the cross-functional alignment and internal capabilities necessary to execute at scale.
Strategic sourcing and RFP management:
3Degrees designed and managed the request for proposal (RFP) process in both regions, identifying best-fit suppliers.
Expert negotiation and risk mitigation:
- US: 3Degrees led PPA negotiations through a turbulent market with detailed scenario analysis and close market monitoring, resulting in a contract for a Texas solar project.
- Europe: The 3Degrees team orchestrated a deal securing a long-term wind PPA that was tailored to cover the company’s AIB load with a built-in option for expansion.
Ongoing monitoring:
The company is able to stay up-to-date on both projects through 3Degrees’ performance monitoring, detailed reporting on project operations, and strategic advice to maximize the value of its global renewable portfolio.
Results
Major US & European VPPAs executed
Global renewable coverage in the US (>100%) and in Europe
Ongoing VPPA monitoring
Significant progress toward net zero emissions goal
