The Zeigo platform streamlines the process of procuring a power purchase agreement, making it easier and more cost effective
Spotted: One of the ways that companies can reduce their carbon footprint is by procuring renewable energy for their operations. But the logistics involved can be complicated – especially for smaller businesses. Now, climate-tech platform Zeigo is making it easier than ever for companies to quickly and cost-effectively source renewable energy.
One way companies access renewable energy is through a power purchase agreement. Known as a ‘PPA’, these contracts represent a long-term energy supply agreement between an energy provider and a customer. As companies commit to ambitious de-carbonisation targets, PPAs allow them to source traceable clean energy, reducing the impact of their electricity consumption. The downside is that PPAs are often complicated and time-consuming to negotiate. Zeigo’s platform addresses this by simplifying and standardising the PPA procurement process.
The Zeigo platform enables companies to run a two-stage tender process for a PPA within six weeks. The value of Zeigo’s technology comes from streamlining the process of matchmaking, pairing customers with a network of renewable energy suppliers based on their energy profile. This process is supported by extensive market intelligence, with Zeigo’s machine-learning algorithm providing a clear view of the market based on historical and forward trends.
Zeigo began by running tenders for larger corporates. But many small businesses are effectively unable to access PPAs because of their size. To address this, the Zeigo platform is increasingly being used for aggregated PPAs, where a group of businesses band together to purchase energy. Buying together like this allows small companies to benefit from the negotiation, cost and price advantages usually reserved for the biggest organisations.
Speaking at a recent COP26 event hosted by Re_Set and Springwise, Zeigo’s founder Juan Pablo Cerda explained, “We have proven that the current status quo is not getting us very far, since the UN Framework convention in 1992, CO2 emissions from energy and industry have increased by 60%. We need new ideas, new solutions to a big problem. We cannot rely on governments or anyone else to solve this problem, we are talking about our very own existence”.
At Springwise, we have spotted numerous innovations that enable companies to track their carbon emissions. These include an emissions accounting engine, and a platform that helps food businesses track emissions. But Zeigo goes further, using technology to remove some of the logistical and administrative obstacles to reducing those emissions.
Written by: Matthew Hempstead