Deal with Shell Energy and MP2 Energy will provide renewable power to meet 100% of the company’s eligible load in seven states and Washington DC
PVTIME - On June 24, Wells Fargo announced structured renewable energy agreements with Shell Energy North America (US), L.P. (Shell Energy) and its wholly owned subsidiary MP2 Energy LLC (MP2 Energy), to secure approximately 150,000 megawatt-hours of renewable energy annually. This energy addresses 100% of the energy consumption of approximately 1,200 Wells Fargo properties in California and the mid-Atlantic states, and meets 100% of the company’s eligible load in California, Delaware, Maryland, New Jersey, Illinois, Ohio, Pennsylvania, and the District of Columbia.
Wells Fargo’s commitment supports the development of new utility-scale solar installations in Riverside County, CA; Prince George’s County, VA; Chesapeake County, VA; and Appomattox County, VA, which will increase renewable energy flowing into the California ISO (CAISO) and PJM Interconnections. These new energy sources will also reduce overall carbon emissions, create jobs, and support resiliency efforts in the respective regions. As part of the agreement, Shell Energy and MP2 Energy are using the renewable energy certificates (RECs) generated by the projects towards compliance with state renewable energy mandates, directly or through third-party sales, and Wells Fargo will receive substitute national Green-e® certified RECs from other renewable energy projects that satisfy Wells Fargo’s asset technology requirements.
The deal announced today represents an innovative solution to provide both the power and RECs from multiple locations and independent system operators to Wells Fargo properties. The Shell Energy and MP2 Energy contracts are for 7- and 6.7-year terms, respectively.
“Entering into long-term contracts that support the development of net-new sources of renewable energy that are geographically close to our facilities is a critical piece of Wells Fargo’s renewable energy strategy,” said Richard Henderson, Head of Wells Fargo Corporate Properties. “We appreciate the collaboration with Shell Energy and MP2 in developing these creative transactions to deliver retail renewable energy supply to our California and mid-Atlantic real estate portfolios, and support the communities where we work and live.”
“Shell Energy recognizes that consumers and society are demanding more sustainable solutions. We have the expertise and vision to lead in that space,” said Glenn Wright, President of Shell Energy North America. “Shell Energy and MP2 Energy are pleased to use our broad capabilities and reach to seamlessly provide this unique offsite renewable retail supply solution to Wells Fargo properties.”
Achieving Renewable Energy Goals
Wells Fargo has been meeting 100% of its annual global electricity requirements with renewable energy since 2017, primarily through the purchase of RECs, which satisfied the first part of a two-pronged 2020 renewable energy goal set in 2016. The company is now working to fulfill the second part of that commitment — to transition to a higher mix of long-term renewable energy contracts and significantly increase deployment of on-site generation in order to support the development of net-new sources of renewable energy by the close of 2020.
In 2019, Wells Fargo announced a deal with Reliant, an NRG Energy company, to purchase 100% of the bank’s total annual requirements in the Electric Reliability Council of Texas (ERCOT) region, approximately 400 locations, from a new solar facility to be built in west Texas. Also in 2019, the bank entered into a subscription agreement with Salt River Project Agricultural Improvement and Power District (“SRP”) to receive 6.1 megawatts output of a new 100-megawatt solar project to be located in Pinal County, AZ, which will meet 28% of its electricity needs in the SRP Arizona footprint. Wells Fargo expects to close additional long-term renewable energy purchase contracts and on-site solar deals later this year.
Financing Renewable Energy
Wells Fargo is a leader in financing large-scale wind, solar, and other renewable energy projects. The company made its first tax equity commitment in 2006; since then, it has become one of the leading investors in the renewable energy space, providing more than $8 billion in tax equity financing to customers in support of more than 400 projects. At the close of 2019, Wells Fargo’s tax equity investments represented 10.3% of all solar and wind generation capacity nationwide.