Amazon's Fifth Year Leading Renewable Energy Purchasing

Businesses making a shift towards renewable sources like wind, solar, and hydro energy are taking strides not just in reducing their dependence on fossil fuels but also in significantly lowering their carbon footprint. This transition not only aids their corporate sustainability goals but also contributes positively to environmental health.

According to data from BloombergNEF, corporate renewable power purchase agreements (PPAs) saw a record uptick in 2022 with an impressive 36.7GW being signed. This figure represents roughly 10% of the global renewable power capacity added in that year. Demonstrating a robust corporate commitment to renewable energy, these initiatives are pivotal in driving down carbon emissions.

A standout in this field is Amazon, which boasts the title of the world’s largest corporate purchaser of renewable energy. The company has been leading the charge globally, with more than 600 projects in its portfolio.

Focusing on regions where power grids are still reliant on high-pollution sources, these projects are vital in helping to reduce the overall environmental impact.

Amazon’s robust renewables strategy

Amazon’s commitment to a future dependent entirely on renewable energy is evident from its ongoing status as the leading corporate purchaser for five consecutive years. By focusing on locations where their projects can deliver the maximum benefit in terms of emission reduction and environmental improvement, Amazon sets a high benchmark in corporate environmental responsibility.

“Amazon isn’t just the top corporate purchaser of solar and wind, we’re also prioritising projects in the locations where they can have the biggest impact on curbing emissions and improving the local environment,” Amazon’s CSO Kara Hurst says. 

“When it comes to addressing climate change, speed and location matter. 

“From collaborating on new energy policies, to accelerating renewables in underserved regions, Amazon is working to help decarbonise grids around the world as quickly as possible.”

In addition to purchasing renewable energy, Amazon supports the development of new projects, thereby adding new renewable energy sources to the grid. This strategy not only matches the electricity used by Amazon’s operations but also enhances grid sustainability and reliability for others.

The company particularly invests in projects located in grids with a heavy reliance on carbon-intensive sources. The strategic placement of solar or wind farms in these areas can significantly decrease carbon emissions and facilitate a shift away from less sustainable energy sources.

Amazon's milestones and global impact

Amazon’s renewable energy portfolio is vast and diversified, including wind and solar projects strategically placed across continents. The company engages in investments within regions heavily reliant on fossil fuels, which are also high emitters of greenhouse gases.

Countries like Australia, China, Greece, India, and more are part of this effort, demonstrating Amazon’s goal to create a significant positive environmental impact across different geographic regions.

Remarkably, by 2023, Amazon had achieved its target of matching 100% of the electricity used by its global operations with renewable energy, reaching this milestone seven years ahead of schedule. This achievement was highlighted in Amazon's 2023 sustainability report.

Projects like the Great Prairie wind farm in Texas, which features 350 wind turbines and surpasses 1,000MW in capacity, and the Daqing wind farm in China, with its 27 turbines producing over 300,000MWh annually, exemplify the scale and ambition of Amazon’s renewable projects. Additionally, the company’s first South American project, a 122MW solar farm in Brazil, underscores its commitment to expanding its renewable footprint globally.

“Building renewable energy anywhere is a good thing, but studies show that building projects in hard-to-decarbonise communities drives the greatest environmental impact — an important step that too many companies are leaving behind,” Gavin McCormick, Executive Director of WattTime and Co-Founder of Climate TRACE says.

“Amazon is proving it is possible to bring renewable energy to high-impact regions like Poland, South Africa and India. 

“While these regions might be challenging to build in, they aren’t impossible and these investments are a critical step to helping slow the pace of climate change.”

Explore the latest edition of Sustainability Magazine and be part of the conversation at our global conference series, Sustainability LIVE. 

Discover all our upcoming events and secure your tickets today.

Sustainability Magazine is a BizClik brand