Toyota - Smart Energy Decisions

Commercial, Energy Procurement, Industrial, Commercial, Industrial, Solar, Sourcing Renewables  -  June 8, 2016

Toyota enters new 5-year supply deal with onsite solar provisions for North American HQ

Toyota Motor Corp. on June 8 activated a unique retail electricity supply contract, with provisions for both onsite and offsite renewable power, for its new North American headquarters in Plano, Texas. 

The automaker partnered with energy management and consulting services firm Priority Power Management LLC, or PPM, to help it develop and implement a comprehensive energy supply purchasing strategy for the site, consisting of a combination of onsite renewable electric supply, off-site renewable electric supply, alternative fuel supply and standard electric supply.

According to a June 8 news release from PPM, the firm analyzed various potential retail electric product structures based on forecasted hourly energy consumption for the 2.1-million square-foot campus comprised of office and office support, data center and light industrial use facilities. The analysis also considered the integration of different levels of solar photovoltaic generated power system capacity interconnected to Toyota’s campus primary distribution feeders behind the utility meter, PPM said. 

"PPM developed specifications and managed a competitive procurement process seeking a qualified retail electricity provider that would deliver the best overall value to Toyota," the firm said. "The process resulted in a 5-year electricity supply contract awarded to Houston-based MP2 Energy that was unique in many ways." 

The agreement includes a product structure that allows Toyota the operational flexibility to ramp up energy consumption over time, accommodations for the introduction of onsite power generation from a 7.75 MW solar PV system, the ability to receive payments from MP2 Energy for any excess power that may flow back to the grid, and the inclusion of Green-e certified renewable energy credits for all power consumed from the grid.

"This was an extremely complex engagement given the size and multi-use functional areas of the campus, not to mention the integration of the solar PV system,” PPM Managing Principal John Bick, said in the release. "Throughout the competitive procurement process, we challenged the conventional thinking of potential suppliers in many ways to achieve Toyota’s goals."

PPM’s energy consulting and advisory services engagement with Toyota will continue throughout the 5-year term of the electricity supply agreement.

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