Amazon recently announced that we met our 100% renewable energy goal, seven years early. Making progress like that—especially with operations as complex as ours—isn’t easy, so we wanted to share more about how we were able to get it done. We used a variety of mechanisms, which included investing in new solar and wind projects, supporting projects in countries that still rely heavily on fossil fuels to power their grids (where renewable energy projects are needed the most), and purchasing Renewable Energy Certificates (RECs).
Here's a bit more about seven key steps we took to achieve our goal:
- Investing in 240+ utility-scale projects, which deliver new sources of energy to the grid
We signed agreements with developers and energy companies where we agreed to buy the renewable energy produced by hundreds of utility-scale solar and wind projects, which help make those projects possible and brings large amounts of new renewable energy online. The agreements – known as Power Purchase Agreements (PPAs) – give the developer confidence to buy materials, purchase land, and move forward with the construction. Once built, these projects provide new sources of renewable energy to the grid, helping decarbonize the grid mix – benefitting everyone who uses those grids (including us). In many cases, these projects would not have moved forward if it weren’t for our investment.
- Enabling 270 onsite solar projects on Amazon buildings, which bring renewable energy directly to our buildings or the local grid
We invested in 270 solar arrays on the rooftops and grounds of Amazon fulfillment centers, Whole Foods Market stores, and other facilities. Many of these projects power the Amazon facilities directly, helping defray the amount of energy the buildings need from the grid. Other projects, like the rooftop solar array at the Amazon Air Hub at the Cincinnati/Northern Kentucky International Airport (CVG), sends power to the local grid, helping power nearby homes and businesses.
- Bringing new renewable energy to regions where our operations are located
The majority of the utility-scale projects we invest in connect to grids where we have operations, including our data center regions. For example, in the IAD Region in Northern Virginia, Amazon has invested in 19 solar projects capable of producing a total of 1.3 gigawatts (GW) of renewable energy for the local grid. In our PDX Region in Oregon, Amazon recently invested in Leaning Juniper, a wind farm that is being repowered with enhanced turbine technology to help it produce more energy. In our DUB Region in Ireland, Amazon is collaborating with Bord na Mona Energy park in County Offaly to co-locate data centers with wind projects, and to invest in up to 800 megawatts (MW) of renewable projects across the country.
- Bringing new solar and wind projects to dirty grids
While a lot of our projects bring carbon-free energy to the grids where we have operations, we’re also focused on making the grid cleaner and more reliable for everyone. An emissions-first approach – which prioritizes supporting renewable energy projects in locations and countries that still rely heavily on fossil fuels – is the fastest way to decarbonize global grids. We’ve done this by investing in projects in countries including Poland, Greece, South Africa, and India, where we enabled 50 solar and wind projects – enough to power 1.1 million homes in New Delhi each year. To demonstrate why location matters, by investing in seven utility-scale renewable energy projects in India, instead of a country like Sweden where the grid is already renewable-heavy, we’ve reduced carbon emissions by 18 times. And to encourage other corporate renewable energy buyers to do the same, we created the Emissions First Partnership alongside many other large buyers of renewable energy, including General Motors, Intel, Meta, and Rivian.
- Using grids that already have a large amount of renewable energy
We’re often able to locate projects on grids that already have a large amount of renewable energy, and as part of our renewable energy methodology, we count the renewable energy mix in the grid toward our goal. This means in a country like the U.S., where the grid already runs on 31% renewable energy, we’re able to reach 100% by investing in additional solar and wind projects to cover the remaining 69% of our energy consumption.
- Purchasing Renewable Energy Certificates (RECs)
No company with complex and growing operations is able today to only consume renewable energy – there simply aren’t enough sources in enough locations, and it takes a while for new projects to come online. Like most companies with ambitious climate goals like ours, we also purchase RECs. RECs are used to legally substantiate claims of renewable energy use, and are used by many companies and government agencies, and other entities, like local utilities. They also help make renewable energy investment more inclusive by allowing medium and small businesses to invest in renewable energy projects without having to purchase an entire wind or solar farm, allowing them to also play a role in addressing climate change.
When Amazon or any other buyer purchases renewable energy, there’s no way to guarantee that the same electron generated by an Amazon-backed project will be the same electron consumed by our data centers, fulfillment centers, or other operations. RECs allow us to account for these electrons, which are still flowing through the grid, and helping power other needs, like energy to run homes and businesses.
- Using different kinds of RECs
Amazon purchases “bundled” and “unbundled” RECs, which we use as a temporary measure. Bundled RECs are purchased alongside our investment in a wind or solar project, and act as a bridge until the project comes online. This is important, because due to grid constraints, many projects are delayed around the world. Across the United States, there are currently more than 260,000 megawatts (MW) of renewable energy and storage projects waiting to connect to the grid—enough carbon-free energy to power 63.3 million US homes.
Unbundled RECs are purchased independent of a project. The revenue typically supports an existing project, helping with repairs, upgrades and other needs. Both forms of RECs are a fundamental component of the global renewable energy market – and are key to our society’s transition to a carbon-free energy future. Many current renewable energy technologies would not have been financed nor have become operable without the support of REC purchases, according to the American Council on Renewable Energy.
Amazon’s commitment to sustainability
We are focused on reaching our Climate Pledge to be net-zero carbon by 2040. We know our path won’t be linear, and we’re continuing to innovate in order to add new sources of carbon-free energy to grids around the world.
We believe in transparency for our customers, employees and partners, and release a voluntary annual Sustainability Report that highlights the work and progress we’re making to become a more sustainable company, across every business in which we operate. This report, including our achievement of our 100% renewable energy goal, is verified by independent external third-party assurors.
From investing in new carbon-free energy projects to advocating for grid modernization and collaborating with key stakeholders around the world, Amazon is working toward a cleaner energy future.
