Nestlé deal the latest move in corporate wind arms race

Nestlé might be best known for Kit Kat, but its commitment to the environment shows no sign of taking a break.

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A Word About Wind
July 4, 2016
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Nestlé deal the latest move in corporate wind arms race

Nestlé might be best known for Kit Kat, but its commitment to the environment shows no sign of taking a break.

Last week, the confectioner announced that it was partnering with Community Wind Power to build a new wind farm to power its operations. The nine-turbine Sanquhar community wind farm in Dumfries and Galloway, set for completion in 2017, is due to produce enough electricity for 50% of Nestlé’s operations in the UK and Ireland.

Nestlé is part of the RE100, which means that it aims to have the entirety of its electricity requirements met by renewables. As part of this, in April, Nestlé reached an agreement with EDF to have all of its electricity from grid-supplied renewables. But Sanquhar is different in that it shows Nestlé is keen to build its own energy as well as buying from others.

This new project demonstrates that Nestlé is taking a step beyond renewable power purchasing agreements towards a model of direct investment in new projects. The likes of Google, and Apple are already doing this, and Nestlé is now following hot on the heels of its rival Mars in trying and beef up its green credentials.

Whilst a commitment to purchasing renewable grid power is welcome, the cynics amongst you might argue that unless that translates into significant levels of activity for developers and others in the supply chain then it is of limited value. But we disagree.

The sort of investment shown here by Nestlé seems to be a good deal all around and may result in a wider green power arms race, seen in recent years with technology firms. Being greener than your rivals can be a good PR move, and that is on top of the financial benefits: this 15-year agreement provides Nestléwith stable energy bills and good publicity, and also gives greater security to the new project.

As more firms clamour to improve their sustainable image, deals of this type may become more common. They allow large companies to take on a more tangible role in investing in renewable energy, whilst opening up a new source of investment and impetus for wind projects across the UK.

Such deals might not have a major effect in supporting activity in the renewable sector, but they have the potential at least to sure up investment in the face of falling subsidies. And it also helps the Kit Kat maker stick up two fingers to its rivals —or should that be four?

Nestlé might be best known for Kit Kat, but its commitment to the environment shows no sign of taking a break.

Last week, the confectioner announced that it was partnering with Community Wind Power to build a new wind farm to power its operations. The nine-turbine Sanquhar community wind farm in Dumfries and Galloway, set for completion in 2017, is due to produce enough electricity for 50% of Nestlé’s operations in the UK and Ireland.

Nestlé is part of the RE100, which means that it aims to have the entirety of its electricity requirements met by renewables. As part of this, in April, Nestlé reached an agreement with EDF to have all of its electricity from grid-supplied renewables. But Sanquhar is different in that it shows Nestlé is keen to build its own energy as well as buying from others.

This new project demonstrates that Nestlé is taking a step beyond renewable power purchasing agreements towards a model of direct investment in new projects. The likes of Google, and Apple are already doing this, and Nestlé is now following hot on the heels of its rival Mars in trying and beef up its green credentials.

Whilst a commitment to purchasing renewable grid power is welcome, the cynics amongst you might argue that unless that translates into significant levels of activity for developers and others in the supply chain then it is of limited value. But we disagree.

The sort of investment shown here by Nestlé seems to be a good deal all around and may result in a wider green power arms race, seen in recent years with technology firms. Being greener than your rivals can be a good PR move, and that is on top of the financial benefits: this 15-year agreement provides Nestléwith stable energy bills and good publicity, and also gives greater security to the new project.

As more firms clamour to improve their sustainable image, deals of this type may become more common. They allow large companies to take on a more tangible role in investing in renewable energy, whilst opening up a new source of investment and impetus for wind projects across the UK.

Such deals might not have a major effect in supporting activity in the renewable sector, but they have the potential at least to sure up investment in the face of falling subsidies. And it also helps the Kit Kat maker stick up two fingers to its rivals —or should that be four?

Nestlé might be best known for Kit Kat, but its commitment to the environment shows no sign of taking a break.

Last week, the confectioner announced that it was partnering with Community Wind Power to build a new wind farm to power its operations. The nine-turbine Sanquhar community wind farm in Dumfries and Galloway, set for completion in 2017, is due to produce enough electricity for 50% of Nestlé’s operations in the UK and Ireland.

Nestlé is part of the RE100, which means that it aims to have the entirety of its electricity requirements met by renewables. As part of this, in April, Nestlé reached an agreement with EDF to have all of its electricity from grid-supplied renewables. But Sanquhar is different in that it shows Nestlé is keen to build its own energy as well as buying from others.

This new project demonstrates that Nestlé is taking a step beyond renewable power purchasing agreements towards a model of direct investment in new projects. The likes of Google, and Apple are already doing this, and Nestlé is now following hot on the heels of its rival Mars in trying and beef up its green credentials.

Whilst a commitment to purchasing renewable grid power is welcome, the cynics amongst you might argue that unless that translates into significant levels of activity for developers and others in the supply chain then it is of limited value. But we disagree.

The sort of investment shown here by Nestlé seems to be a good deal all around and may result in a wider green power arms race, seen in recent years with technology firms. Being greener than your rivals can be a good PR move, and that is on top of the financial benefits: this 15-year agreement provides Nestléwith stable energy bills and good publicity, and also gives greater security to the new project.

As more firms clamour to improve their sustainable image, deals of this type may become more common. They allow large companies to take on a more tangible role in investing in renewable energy, whilst opening up a new source of investment and impetus for wind projects across the UK.

Such deals might not have a major effect in supporting activity in the renewable sector, but they have the potential at least to sure up investment in the face of falling subsidies. And it also helps the Kit Kat maker stick up two fingers to its rivals —or should that be four?

Nestlé might be best known for Kit Kat, but its commitment to the environment shows no sign of taking a break.

Last week, the confectioner announced that it was partnering with Community Wind Power to build a new wind farm to power its operations. The nine-turbine Sanquhar community wind farm in Dumfries and Galloway, set for completion in 2017, is due to produce enough electricity for 50% of Nestlé’s operations in the UK and Ireland.

Nestlé is part of the RE100, which means that it aims to have the entirety of its electricity requirements met by renewables. As part of this, in April, Nestlé reached an agreement with EDF to have all of its electricity from grid-supplied renewables. But Sanquhar is different in that it shows Nestlé is keen to build its own energy as well as buying from others.

This new project demonstrates that Nestlé is taking a step beyond renewable power purchasing agreements towards a model of direct investment in new projects. The likes of Google, and Apple are already doing this, and Nestlé is now following hot on the heels of its rival Mars in trying and beef up its green credentials.

Whilst a commitment to purchasing renewable grid power is welcome, the cynics amongst you might argue that unless that translates into significant levels of activity for developers and others in the supply chain then it is of limited value. But we disagree.

The sort of investment shown here by Nestlé seems to be a good deal all around and may result in a wider green power arms race, seen in recent years with technology firms. Being greener than your rivals can be a good PR move, and that is on top of the financial benefits: this 15-year agreement provides Nestléwith stable energy bills and good publicity, and also gives greater security to the new project.

As more firms clamour to improve their sustainable image, deals of this type may become more common. They allow large companies to take on a more tangible role in investing in renewable energy, whilst opening up a new source of investment and impetus for wind projects across the UK.

Such deals might not have a major effect in supporting activity in the renewable sector, but they have the potential at least to sure up investment in the face of falling subsidies. And it also helps the Kit Kat maker stick up two fingers to its rivals —or should that be four?

Nestlé might be best known for Kit Kat, but its commitment to the environment shows no sign of taking a break.

Last week, the confectioner announced that it was partnering with Community Wind Power to build a new wind farm to power its operations. The nine-turbine Sanquhar community wind farm in Dumfries and Galloway, set for completion in 2017, is due to produce enough electricity for 50% of Nestlé’s operations in the UK and Ireland.

Nestlé is part of the RE100, which means that it aims to have the entirety of its electricity requirements met by renewables. As part of this, in April, Nestlé reached an agreement with EDF to have all of its electricity from grid-supplied renewables. But Sanquhar is different in that it shows Nestlé is keen to build its own energy as well as buying from others.

This new project demonstrates that Nestlé is taking a step beyond renewable power purchasing agreements towards a model of direct investment in new projects. The likes of Google, and Apple are already doing this, and Nestlé is now following hot on the heels of its rival Mars in trying and beef up its green credentials.

Whilst a commitment to purchasing renewable grid power is welcome, the cynics amongst you might argue that unless that translates into significant levels of activity for developers and others in the supply chain then it is of limited value. But we disagree.

The sort of investment shown here by Nestlé seems to be a good deal all around and may result in a wider green power arms race, seen in recent years with technology firms. Being greener than your rivals can be a good PR move, and that is on top of the financial benefits: this 15-year agreement provides Nestléwith stable energy bills and good publicity, and also gives greater security to the new project.

As more firms clamour to improve their sustainable image, deals of this type may become more common. They allow large companies to take on a more tangible role in investing in renewable energy, whilst opening up a new source of investment and impetus for wind projects across the UK.

Such deals might not have a major effect in supporting activity in the renewable sector, but they have the potential at least to sure up investment in the face of falling subsidies. And it also helps the Kit Kat maker stick up two fingers to its rivals —or should that be four?

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Not a member yet?

Become a member of the 6,500-strong A Word About Wind community today, and gain access to our premium content, exclusive lead generation and investment opportunities.