Energy Finance Report

Blog Update: The Future of Electricity Markets? Corporations Directly Buying Renewable Power

Posted by Elias Hinckley on 10/6/16 11:08 AM

future of electricity markets

An increasing number of corporations are directly buying from (or building) clean electricity sources. For decades most Fortune 1000 companies did little more than seek to manage costs as they bought electricity and fuel. This model of simply relying on the existing marketplace to meet energy needs has, however, suddenly become outdated. More and more companies are realizing the strategic advantages of sourcing renewable power. Companies that fail to adapt will face serious competitive disadvantages as this trend accelerates.

Several factors are driving this explosion in interest in direct purchases of clean energy. Reasons range from pure cost per kWh purchased, to market and regulatory certainty, to the brand value of reducing reliance on fossil fuels, to concerns over the future of specific markets in the face of a changing climate. Consistent in every one of these motives is an underlying economic case: replacing electricity generated from burning fossil fuels with electricity from wind and solar is a good business strategy.

Read the full article in the September 2016 issue of The EDGE Advisory. Click here.

 

Topics: corporate procurement, Renewable power

EDGE Advisory: Focus on Corporate Renewables

Posted by Elias Hinckley on 10/4/16 1:24 PM

Co-author Jim Wrathall and Morgan M. Gerard

Sullivan & Worcester, LLP recently released our EDGE Advisory: Focus on Corporate Renewables.  EDGE examines energy macro-trends through articles and expert contributions focusing on market direction, policy updates, and innovations in finance.


EDGE Energy Finance ReportCorporate renewable energy purchasing is one of the hottest topics in clean energy. Corporations and other large institutions are taking control of their environmental, climate, and energy foot-prints.  This new focus on energy includes on-site generation, the traditional power purchase agreements (PPA), synthetic PPAs, contracts for differences and other energy hedging tools as well as green tariffs and negotiated green sourcing with utility providers.  Renewable energy helps corporations achieve cost savings, green commitments, and brand enhancement. Corporate buyers are also discovering that renewable power can be an important resilience tool – protecting against price volatility, regulatory uncertainty, and even physical grid disruption.  Transaction complexity, a rapidly evolving power market, regulatory uncertainty, and some instances of poor execution have however, made deals challenging for new entrants into this market.

This issue of EDGE Advisory addresses these obstacles and focuses on strategies for success in the corporate procurement of clean energy, including transaction structuring; common pitfalls to avoid; the role of environmental attributes; regulatory developments and prospects; and attracting tax equity investment. We are excited to help build solutions for the structural and process roadblocks that can impede progress and look forward to opening a range of related discussions with our readers.  Featured topics include:

  • Energy Transition Driving Corporate Participation in Renewable Energy Purchasing
  • Keys to Success for Corporate Procurement Transactions
  • Market Outlook: Corporate Clean Energy Purchasing
  • Unlocking Clean Energy Value in Dormant Corporate Properties
  • Interview Q&As with:

    • Vince Digneo, Sustainability Strategist, Adobe Systems
    • Shalini Ramanathan, VP Originations, Renewable Energy Systems
    • Jonathan Silver, Managing Partner, Tax Equity Advisors, LLC
  • State Policy Developments and Prospects
  • Financing International Projects

We hope EDGE Advisory will provide helpful intelligence and add value to participants across the market. Please do not hesitate to contact any of us on the S&W Energy team if there are topics of particular interest or further follow up that may be of assistance in your business or investment projects.

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Topics: corporate procurement, renewable energy finance, tax equity

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The Energy Finance Report analyzes developments in energy finance as well as provides updates and perspectives on market trends and policies.

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