Corporate Commitments Could Spark CNRG | ETF Trends

Whether it is more drivers purchasing electric vehicles or more homeowners adding solar panels, individual consumers can and do play vital roles in advancing clean energy concepts, but corporations and governments can really affect scale in the renewable energy space. Fortunately for investors considering exchange traded funds such as the SPDR Kensho Clean Power ETF (CNRG), there’s mounting evidence that some companies are upping their renewable energy exposure and doing so in significant fashion.

Important to that notion is the point that many of the companies that are prioritizing adoption of renewable energy are large, well-known firms with the resources to expand their clean energy consumption over the long haul.

“Amazon is the largest corporate consumer of renewable electricity with about 1.5 GW of new contracts recorded during second quarter of 2022. In May 2022, Amazon Web Services (AWS) signed two PPAs for its California operations in the United States to procure 300 MW solar PV and 150 MW hybrid with storage capacity from AES Corporation. As of 2021, Amazon has achieved 85% share of its procurement through renewables and is on its way to achieve 100% renewable procurement target globally by 2025,” according to IHS Markit.

AES Corp. (NYSE:AES) is a CNRG component. Bolstering the longer-ranging, corporate-aided case for CNRG is the point that Amazon is far from alone when it comes to corporations embracing renewable energy.

“The third largest clean energy offtaker in Q2 2022 is services company Meta. In April 2022, Meta and TransAlta signed a long term PPA for 100% of the onshore wind capacity from its pipeline project Horizon Hill expected to come online in 2023. Meta reportedly meets 100% of its global electricity demand from renewable sources since 2020,” added HIS Markit.

Further supporting the CNRG case is the point that corporate adoption of renewable energy isn’t an exclusively U.S. trend.

“The second largest offtaker of renewable PPAs during Q2 2022 is India-based materials company JSW Steel which announced to procure hybrid renewables including 225 MW solar PV and 733 MW onshore wind for its Vijaynagara, Karnataka facility. A 25-year direct PPA is signed with JSW Energy (renewable IPP) under a group captive mode. JSW Group has a target to reduce its carbon footprint by 50% with 20 GW renewable energy installed capacity by 2030 and achieve carbon neutrality by 2050. As of FY2022, JSW Energy has a 230 MW renewable installed capacity and a pipeline of 2.2 GW,” concluded Markit.

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.