Commercial, Distributed Generation, Finance, Industrial, Sourcing Renewables - May 18, 2016
Altenex makes public its PPA for corporate renewable energy buyers
Renewable energy advisory and procurement firm Altenex LLC on May 18 released the power purchase agreement it has used to successfully execute more than 1 GW of renewable energy transactions across all major U.S. power markets.
The company, which is a unit of Edison International’s newly launched, unregulated subsidiary Edison Energy, said its goal in releasing its renewable energy purchase agreement, or REPA, is to help accelerate corporate and institutional renewable energy buying. The contact has been battle-tested, according to Altenex managing director Blaine Collison, having been successfully utilized by clients that include Fortune 1000 companies, government agencies and universities.
"This move by Altenex evidences Edison Energy’s commitment to being the trusted advisor to large energy users," said Allan Schurr, president of Edison Energy. "This is about what is best for our customers and the industry."
As commercial and industrial companies — which make up the vast majority of entities that have used the agreement, Collison said — have not traditionally used long-term contracts for their power, they often have concerns around the risk associated with entering into a long-term PPA that prevent them from moving forward with renewable energy deals.
Altenex, in response, specifically designed its REPA to mitigate risks corporations face in procuring large-scale, off-site renewable energy supply, and to avoid some of the most common pitfalls that can occur in doing so, according to a May 18 news release. Scheduling ongoing maintenance of a wind or solar facility, for example, can have major production/economic performance implications for the off-taker if a facility is down during peak-production/peak-usage times.
"Corporate buyers, especially, need to manage a number of critical risks in any renewable energy transaction, and we believe one of the best ways to do that is through the contract,” Altenex’s senior managing director said Duncan McIntyre said in a statement, adding that “most companies don’t have their own proven PPA sitting around on a shelf.
The contractual protections of the buyer’s interests included in the Altenex contact, he said, provide a high level of confidence for clients' senior leadership and help them move forward.
The REPA is available for free download for commercial, industrial and institutional energy users on Altenex's website, www.altenex.com.
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