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Submitted by littleran on January 13, 2008
Category: Miscellaneous
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Starbucks Buys Wind Power to Reduce Climate Impact - Case Study
Starbucks Coffee Company committed recently to purchase wind power to offset a portion of the energy used in its operations. The commitment puts the company in the top 25 U.S. purchasers of renewable energy. Mitigating climate change is the driver behind Starbucks' decision to buy renewable energy certificates, which allow any size company to support renewable energy.
Denis Du Bois
June 01, 2005
A global enterprise has committed to purchase wind power to offset a portion of the energy it uses. The US$5.3 billion company is involved in agriculture, transportation, equipment sales, music distribution, and brand licensing, with locations in 36 countries worldwide. But this company is better known to most of us as the coffee shop on the corner -- Starbucks Coffee Company.
Starbucks' renewable energy purchase represents five percent of the kilowatt hours used in 6,376 company-owned stores in North America . The commitment puts the company in the EPA's top 25 U.S. purchasers of renewable energy.
Renewable energy certificates
Starbucks purchases wind power through renewable energy certificates, or RECs, also known as green tags.
RECs are created when a facility produces electricity from a renewable resource. With RECs, the "soft" benefits -- in particular, the avoided pollution -- are sold separately from the energy itself. So buyers of the certificates financially support the production of renewable energy, though don't necessarily use the energy produced. For example, Starbucks accrues the soft benefits of the wind energy they buy, but not the electricity, so they still must buy power.
RECs are not the only way to get renewable power. Some businesses install renewable energy equipment and capitalize on incentive programs; for others, the local utility might offer renewable power purchase options.
But Starbucks was faced...
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