By directly sourcing renewable energy, more and more companies are reducing energy costs and energy price volatility while achieving their sustainability and climate change goals. However, many potential renewable energy buyers are worried about the risks associated with committing to a long-term power purchase agreement. Helping organizations quantify and manage these risks is a vital component to the continued acceleration of the U.S. renewable energy market.
One way Edison Energy has tried to help organizations understand and manage these risks is to make the Altenex Renewable Energy Purchase Agreement (REPA) available to interested stakeholders. Altenex, an Edison Energy company, developed the REPA as a proprietary compilation of best renewable energy purchasing practices. The REPA has been used to execute more than 1.4 GW of renewable energy with our commercial and industrial clients. Leveraging the lessons learned in the form of an executable, comprehensive REPA can assist commercial and industrial companies and large institutions mitigate the risks and achieve the successful execution of power transactions across all major U.S. power markets.
Fortune 1000 companies, government agencies and universities considering renewable energy purchases often face questions around project viability and operations, volume and resource considerations, counterparty risk, renewable energy certificate devaluation, regulatory change, intermittency and hedge effectiveness. The REPA was specifically designed to manage each of these issues — and more — in a clear, transparent, and contractually-assured manner. Doing so helps organizations maximize both environmental and economic value from their renewable energy efforts.
Making the REPA available to potential renewable energy buyers — and using the REPA in all of our commercial transactions — starts to move the industry toward contractual standardization. And standardizing best practices will help the entire industry reduce costs, increase efficiencies, and continue its overall acceleration.
The Altenex REPA is available at altenex.com/resources.