Renewable Energy Procurement

Securing renewable energy assets differs significantly from procurement of conventional energy.

Excel Commercial can manage the process from start to finish so your business can focus on the strategic decisions that will determine the success of the acquisition.

  • Orchestrate RFP process to fit renewable energy strategy
  • Evaluation of development process and asset location for offsite purchases
  • Review of finance ability of proposed projects
  • Evaluation of expected production profiles and ability to meet goals of the transaction
  • Plan additional services needed as part of the renewable purchase or separately, including:
  • Scheduling services,
  • Settlement services,
  • Metering & telemetry,
  • Regulatory obligation management and others
  • Negotiation of Power Purchase Agreements

Power purchase agreements (PPAs) for renewable energy vary greatly between different suppliers and developers of renewable energy. Having an energy market expert such as Excel Commercial at the table is critical to negotiating an agreement that will deliver the expected value over the typically long term of the agreement. Key commercial terms Excel Commercial focuses on include:

  • Appropriate risk allocation between the parties
  • Energy production guarantees
  • Remedies for production shortfall, default, and other adverse outcomes
  • Force majeure, buyer and utility curtailments
  • Regulatory and compliance costs and allocation
  • Ownership of generation attributes including renewable energy credits, carbon offsets, resource adequacy capacity, and others
  • Security requirements

Reducing and optimizing energy consumption is key to both keeping overall energy costs down and meeting sustainability goals. Some of the largest cost reductions come from simple operational modifications that are low or no cost. For larger capital projects, Excel Commercial can assist in identifying the most favorable financing source. From evaluating payback on capital investments to assessing the cost impact from operational changes, Excel Commercial provides a host of services to assist clients in this area.

Energy Audits

Excel Commercial team of Energy Professional can provide a full suite of energy audit and benchmarking services, including:

  • Level I, II, and III audits
  • Retro-Commissioning of existing facilities
  • Power factor studies and correction recommendations
  • Principal use studies
  • Behavioral energy conservation programs

Sourcing Financing

There are many ways to fund the cost of energy efficiency projects. Excel Commercial can support in arranging 3rd party traditional or performance-based financing as well as PACE (Property Assessed Clean Energy) financing for projects like LED lighting retrofits, HVAC upgrades, on-site renewable generation and others. Many utilities and government entities also offer rebates or tax incentives for certain energy efficiency upgrades. Excel Commercial can manage the rebate process to provide funding for projects. Additionally, when a client is building a new facility, Excel Commercial can review plans to see if the planned equipment qualifies for any rebate funds and manage the application process for any available rebates as well.

Utility Infrastructure Management

Large energy consumers are heavily dependent on electric utilities and natural gas pipeline operators for reliable energy delivery. Excel Commercial can help make sure its client's needs are addressed in this area, including:

  • Establishing new electricity delivery points
  • Addressing electricity reliability issues with the utility

Excel Commercial manages the energy procurement process from start to finish for its clients. Creating the proper competitive environment and accurately comparing competing offers is critical to the energy procurement process. Energy Edge's relentless focus on the details of proposals, pricing structures, and contracts ensures that clients get the maximum value out of their procurement strategy and do not face the surprise of an unexpected cost after contract execution.

Supplier Qualification & Proposals

Excel Commercial maintain relationships with over 100 leading suppliers of electricity, natural gas and related services in North America and Europe. Our insight into their operations allows Excel Commercial to:

  • Provide clients with pre-qualification information on potential suppliers to narrow the field as appropriate
  • Develop a clear and detailed solicitation based on the energy strategy developed with the client, specifying the desired product structures
  • Work with suppliers in customizing their products to fit the specific needs of the energy strategy

Supplier Comparison & Analysis

Once Excel Commercial has received initial proposals from suppliers, a thorough analysis of the proposals is conducted, and a detailed comparison is prepared. Key areas of evaluation include:

  • The calculation methodology for pass through cost components and recommendations as to whether the methods are reasonable
  • The risk/reward balance of any pass-through components (i.e. will taking a certain cost as a pass through ultimately result in higher or lower overall costs)
  • Comparison of contract provisions
  • Overall supplier capabilities and financial strength
  • Contract Negotiations & Execution

A critical phase of the procurement process is negotiating contract terms with shortlisted suppliers. As part of the contract negotiation process, Excel Commercial will:
  • Provide a detailed review of each short listed supplier's contract
  • Provide redlines of each agreement with Energy Edge's suggested modifications to commercial terms
  • Coordinate with client's in-house counsel
  • Lead contract negotiations with suppliers
  • Assign values to differences between suppliers in various contract provisions so final contract comparisons can be made