Many of today’s businesses are embracing renewable energy as a means to lower costs, manage wholesale market risk, and achieve corporate sustainability goals. However, given the complexity of renewable energy contracts and the diversity of ways to reduce carbon emissions, many organizations struggle to determine how to best integrate renewables into their supply mix, and how to achieve the greatest possible value from their purchases.
Enel X, a global leader in renewable energy strategy and procurement, has streamlined the renewable procurement process by standardizing renewable products and terms and driving competition among suppliers in live auction events hosted by our award-winning reverse-auction technology.
Enel X helps renewable energy purchasers save time, lower costs, and mitigate risks in today’s renewable energy market.
Launching a Renewable Energy Strategy
Renewable Workshops
Enel X leads workshops with corporate and site-level stakeholders to identify business goals and rank priorities. Stakeholders align on a renewable energy strategy that balances different and often-competing goals around energy cost reduction, demand charge management, CAPEX outlays, budget certainty, speed to market, carbon/GHG emission reduction, regional air quality impacts, additionality, tenor length flexibility, and contractual complexity.
Strategy Development
By prioritizing and aligning renewable energy goals with renewable options, Enel X helps buyers select the best resources (wind, solar, biomass) in the least-risky geographies, among new vs. existing projects, at the optimum volumes and terms, for the best products (PPAs, VPPAs, RECs, green retail).
Building a Marketplace
Term Sheets and Vendor Outreach
Enel X reviews term sheet strategies with renewable buyers and advises on the cost and risk implications of key commercial terms including price indexes, delivery points, bidding/scheduling responsibilities and requirements, REC certification and delivery, capacity rights, and much more. Enel X then recruits dozens of renewable energy developers to negotiate on established terms, providing the developers the transparency they need to compete to win your org- anization’s business.
Negotiate Standard Terms and Bidder Training
Enel X reviews renewable energy contract terms with buyers and sellers to drive towards an agreed-upon set of standard terms. Enel X then leads informational webinars and 1-on-1 training with qualified developers to prepare them for head- to-head competition in live, online auction events.
Execution
Auction Design
Enel X structures auction formats according to proven design principles and game theory to exert maximum pressure on your price. By sequencing auctions based on customer priorities, and conducting descending clock and hybrid auctions, Enel X has consistently achieved prices up to 10% below market comparisons.
Live Auction Events
Enel X experts support all parties (developers, customers, consultants) during and after auction events. Auction efficiencies and 99% award rates lowers transaction costs and increases developer competition, while Enel X’s ongoing support ensures that renewable energy agreements are completed and project timelines are achieved.
Maximizing Project Value
Monetizing Capacity
Bidding renewable energy assets into capacity markets can create a substantial revenue stream. Enel X helps customers develop capacity management strategies that maximize payments and manage penalty risks. Enel X can be your bidding agent, and can also help aggregate resources from our market-leading demand response portfolio to amplify your earning potential.
REC Arbitrage
Depending on the renewable buyer’s environmental objectives, REC arbitrage may generate significant returns. For example, some Massachusetts Solar renewable energy credits currently are currently valued between $285 and $404/MWh while merchant RECs in Texas can be purchased at $1/MWh.
Energy Scheduling
Enel X experts help renewable energy buyers manage market risks by providing scheduling and bid support in real-time and day-ahead markets.
Performance Management
Monthly Settlements
Virtual PPAs settle on an hourly basis, and debits or credits accrue monthly. Enel X relieves your company of the administrative burden required to validate hourly production and pricing data and confirm monthly payments.
Manage Risk and Integrate Renewable Energy into Broader Energy Procurement
Enel X helps buyers integrate renewable energy purchases into their broader energy procurement and risk management strategies by forecasting production, costs, and budget impacts, and layering in additional purchases as needed to meet minimum hedging targets and/or Value-at-Risk thresholds.
Performance Reporting
To ensure that your company can easily capture and report on the CSR benefits of a renewable energy program, Enel X helps buyers evaluate financial performance of renewable energy assets and report environmental impact using market-based emission standards.
