Amazon Makes Progress Toward 100% Renewable Energy by 2025

Amazon, the world's largest online retailer, recently sped up plans to power all its operations with 100% renewable energy by 2025, five years ahead of its original 2030 target date.

The company, which has a corporate-wide mission to address climate change and promote sustainability, set a new corporate record in 2022 for the most renewable energy purchased by a company in a single year.

Amazon remains the leading purchaser of renewable energy — a position it’s held since 2020.

By Appolinary Kalashnikova x Unsplash

At the end of 2021, the company had already achieved 85% renewable energy across its businesses. It plans to continue adding wind and solar projects to the grids powering its data centers, fulfillment centers, and on-site stores globally.

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Renewable Energy Progress at Amazon

Throughout 2022 and into early 2023, Amazon announced or launched 133 new renewable energy projects within the U.S., Australia, Brazil, Canada, Finland, France, Germany, India, Indonesia, Japan, Poland, Singapore, Spain, and U.K.

The company’s energy portfolio now spans 400+ renewable energy projects in 22 countries, representing more than 20 GW of clean energy, or enough to power 5.3 million U.S. homes.

Amazon’s renewable energy projects currently include 164 wind farms and solar farms, and 237 rooftop solar projects at Amazon facilities. The company’s clean energy projects are projected to eventually generate 56,881 gigawatt-hours (GWh) of clean energy each year.

• One example is a new solar project that Amazon has paired with energy storage in California. Amazon will store clean energy produced by its solar projects, deploying it at night or in high-demand periods when solar energy is not available.

• In India, Amazon is running three wind-solar hybrid projects ─ renewable systems designed to help reduce carbon levels in India, as well as lower electric costs and encourage a more stable power grid.

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Amazon’s clean-energy efforts continue throughout the company itself as well, from installing energy-efficient LED light sources to electrifying its delivery fleet in more than 100 U.S. cities and regions, as well as in parts of Europe and Asia Pacific.

"Amazon's clean energy portfolio doesn't just top the corporate charts ─ it is now among the leading utilities globally, as well,” said Kyle Harrison, head of sustainability research at Bloomberg New Energy Finance. “The fact that it announced a new annual record of clean energy in a year mired by a global energy crisis, supply chain bottlenecks, and high-interest rates speaks to its forward planning and expertise in navigating power markets and executing long-term contracts."

By Daniel Holland x Unsplash

Why Renewable Energy is Important

Fossil fuels, when burned, release greenhouse gases which contribute to harmful climate change. Large companies are increasingly interested in limiting their usage of these fuels and turning to renewables.

Renewable energy is derived from natural sources ─ wind, solar, hydropower ─ that replenish faster than they are consumed and produce no carbon emissions or other pollutants that can affect our climate.

By using renewable energy, a company reduces its carbon footprint and helps mitigate the negative effects of climate change, such as rising sea levels, more frequent natural disasters, and subsequent disruptions to the global economy.

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And as renewable energy sources become increasingly cost-competitive with fossil fuels, they can be good business as well: companies using clean sources can reduce their energy costs and improve their bottom line.

On a global scale, rapidly scaling renewable energy is one of the most effective strategies to fight climate change. Amazon recently helped establish Emissions First, a coalition advocating to reduce carbon from worldwide electric grids quickly and cost-effectively.

The Climate Pledge

The Clean Energy Buyers Association (CEBA) noted that, despite last year’s market uncertainties, 2022 was a record-breaking year for corporations adopting clean energy.

Nearly 400 companies – from Best Buy to PepsiCo to Visa – have now joined The Climate Pledge program co-founded by Amazon in 2019.

The program is aimed at bringing industry leaders together to achieve net-zero carbon emissions by 2040, a decade ahead of The Paris Agreement's goal.

By Markus Spiske x Unsplash

Besides Amazon, other major corporations engaged purposefully in the use of eco-friendly energy sources include Apple, Google, Microsoft, and Walmart:

• Apple has already achieved its target of using 100% renewable energy to run all its operations globally, including data centers, offices, and retail stores. The company invests in renewable energy projects around the world and encourages its suppliers to use it.

• Back in 2017, Google said it would purchase enough renewable energy to match its global energy consumption. Since then, the company has announced plans to run all its data centers and offices on 100% carbon-free energy by 2030.

• Microsoft is committed to being carbon-negative by 2030, with a goal to use 100% renewable energy by 2025. The company is investing in renewable energy projects and recently announced the purchase of energy from a new wind farm in Texas.

• Walmart has a goal of 100% renewable energy use by 2035, invests in wind and solar projects, and applies energy efficiency measures in its stores and operations.

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