Commercial, Industrial, Sourcing Renewables - January 10, 2017
Citi strikes clean energy deal for Texas data center
Banking giant Citi has entered into a new contract to purchase renewable energy for a multiyear term at its Roanoke, Texas, data center.
The Citigroup Inc. company said in a Jan. 10 news release that it entered into a contract that will provide Green-e certified renewable energy for 50% of the data center's power needs. The deal represented a collaboration between Citi Realty Services, an internal unit responsible for the company's facilities, and Citi subsidiary Citigroup Energy Inc., to meet its renewable energy needs.
Citi said those two divisions worked with MP2 Energy to arrive at a structure that "allowed Citi to fix its retail rate and utilize renewable power at an attractive price level." No further other about the transaction were disclosed in the announcement.
"This deal will provide a renewable source of energy as well as price certainty to one of our key data centers," Citi Realty Services global head of operations John Killey said in a statement. "It also demonstrates the value that comes from the close collaboration between [Citi Realty Services] and Citigroup Energy and Citi's commitment to sustainability across its own operations as part of its sustainable progress strategy."
Referring to the development as a "landmark deal," Roxana Popovici, a managing director responsible for renewable power transactions within Citigroup Energy said the unit was able to work together to ensure that the various risks inherent in commodity markets were allocated based on which entity is best positioned to manage each one. “As companies like Citi look to ramp up their purchase of renewable energy, structures like the one employed in this transaction will become increasingly important and will be critical to scaling the market for renewable energy.
"As companies like Citi look to ramp up their purchase of renewable energy, structures like the one employed in this transaction will become increasingly important and will be critical to scaling the market for renewable energy," she said in the release.
Parent company Citigroup Inc. recently reported that it reduced energy use by more than 22% globally in 2015, and cut absolute Scope 1 and Scope 2 greenhouse gas emissions by 25%.
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