New EU Glass Fibre Duties Raise Composite Material Sourcing Costs
EU anti-dumping duties on Chinese glass fibre reinforcements increase landed costs for automotive and wind energy supply chains.
Wind Energy Procurement
Utility Contract
The acquisition of electricity generated by wind farms through long-term contracts or direct investments supports the carbon-reduction goals of corporate and industrial buyers. Through wind energy procurement, companies lock in clean power volumes via power purchase agreements or direct ownership of turbine arrays. This sourcing activity protects buyers from the volatility of wholesale fossil-fuel power markets.
Sourcing Approach
Corporate buyers negotiate power purchase agreements with developers to purchase a set volume of clean energy at a fixed price over fifteen to twenty years. This long-term commitment provides the developer with the financial security needed to secure construction loans for new turbine sites. However, the intermittent nature of wind power means that buyers must manage the times when generation drops below their real-time demand.
Many corporations combine wind contracts with solar power and battery storage to ensure a stable supply of renewable energy. Sourcing teams use virtual agreements to offset their energy costs without taking physical delivery of the electricity.
Risk Balance
Regulatory changes can affect the value of renewable energy credits generated by these contracts. Changes in grid connection rules can delay the startup of new wind farms. Organizations must evaluate these regional grid constraints before signing long-term power contracts.