Renewable energy is more than a feel good investment – it can materially reduce the average cost of an energy portfolio and provide important sustainability benefits if properly structured and negotiated. Opportunities to utilize available rooftops, parking lots or other open acreage, can attract inexpensive capital and incentive dollars to provide low cost Power Purchase Agreements or opportunities for self-funded projects.
Renewable investments are complex structures designed to provide direct access to generation assets over a long-term. These contract structures require negotiation of terms and risks that are not typically seen in retail transactions. PRX Energy has extensive
experience with renewable energy Power Purchase Agreements (PPA), construction
agreements (EPC) and other contract vehicles. We work with client business leaders and legal counsel to protect them from hidden costs and risk exposure.
PRX Energy uses a proven approach to identifying, valuing and negotiating renewable energy opportunities including:
- Independent project valuation to establish expectations for project costs, developer/finance returns and operating costs producing a strong value proposition for purchasers
- Qualification of regional and national providers to create a competitive environment and ensure a high quality project at the lowest available price
- High quality RFP designed to standardize the opportunity allowing for offers to be accurately compared so the best vendor at the best price can be identified
- State of the art procurement platform provided by Procurex supporting online and transparent RFPs and reverse auctions
- Robust analysis of offers that highlights benefits and risks to ensure the right award decision
- Experienced negotiations of contract terms to ensure project and performance risks are properly borne by the provider and the value proposition to the purchaser is maximized
Barton Mines Company LLC was seeking a solar solution to promote its brand as the global leader in Garnett abrasives and add to their sustainability portfolio which also includes a Platinum LEED certified headquarters in Glens Falls, NY. PRX Energy was brought in to lead the initiative to identify a project that provided a strong value case. PRX Energy conducted an RFP across 7 regional solar developers, negotiated the terms of a PPA, and is monitoring project construction and operations to ensure over $3 million in savings is secured over the 20 year PPA.
In addition, PRX Energy is advising Barton on strategy for competitive power purchases that work with the PPA to protect savings and mitigate market risks associated with a modified market position brought by the solar project. PRX Energy is monitoring solar savings and market prices to properly optimize the overall electricity portfolio and deliver the highest net value. PRX Energy provides annual operating budget forecasts and updates the solar savings quarterly to ensure the project is performing as expected.