Schneider Electric has acquired start-up climate-tech platform Zeigo. The acquisition will complement Schneider Electric’s portfolio of clean energy services and solutions and advance the company’s digital energy transformation ambitions. The terms of the deal were not disclosed.
Steve Wilhite, SVP for Schneider Electric’s Sustainable Business Division, said, “As the world’s largest advisor to corporations on renewable energy procurement, we know that speed and complexity are two of the barriers that keep some corporations out of the PPA market. By adding the Zeigo technology and team to our existing portfolio of services and solutions, we will be able to provide even greater value to our clients worldwide.”
Organisations face increasing pressure to decarbonise as climate risks and global ambitions for an equitable energy transition both accelerate. For the past 10 years, one of the most common and effective means for companies to begin to decarbonise has been utility-scale renewable energy power purchase agreements (PPAs). To date, organisations have voluntarily purchased more than 77 gigawatts of wind, solar, and geothermal power via PPA.
The demand for PPAs is expected to grow as net-zero ambitions accelerate globally. More than 2,000 companies have already joined the Science-based Targets Initiative with the intention of mapping their decarbonisation aspirations to a 1.5 degree Celsius global warming threshold. A further 300+ corporations have joined the Climate Group’s RE100, committing to achieve 100% renewable energy in their operations. Taken in total, these commitments have led Bloomberg New Energy Finance to predict a shortfall in corporate renewable energy of 269 terawatt-hours by 2030.
Renewable energy procurement is time-consuming and complicated, requiring significant expert evaluation of projects and risks alongside the satisfaction of stakeholders up to and including corporate boards. By combining Zeigo’s AI capabilities with its existing advisory services, Schneider Electric will deploy enhanced collaborative intelligence in the energy and environmental commodity procurement process.
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