Altenex, an Edison Energy company, today made public its proprietary Renewable Energy Purchase Agreement (REPA) used for commercial, industrial and institutional clients. The REPA, a power purchase agreement (PPA) for renewable energy, has been used by multiple Altenex clients, including Fortune 1000 companies, government agencies and universities in the successful execution of more than one gigawatt of transactions across all major U.S. power markets.
By releasing the PPA to the market, Altenex intends to help companies and institutions accelerate their renewable energy purchasing efforts.“For organizations looking at renewable energy procurement, the lack of a contract that appropriately mitigates buyer risk can be a significant barrier to entry,” said Duncan McIntyre, Altenex’s senior managing director. “Corporate buyers, especially, need to manage a number of critical risks in any renewable energy transaction, and we believe one of the best ways to do that is through the contract.”
The Altenex REPA has been specifically designed to mitigate companies’ risks in procuring large-scale, off-site renewable energy supply to avoid some of the most common pitfalls that can occur in this kind of transaction. An issue as simple as scheduling ongoing maintenance of a wind or solar facility can have major production/economic performance implications for the off-taker if a facility is down during peak-production/peak-usage times.Other major areas of contract-addressable risk include project operations, volume/resource considerations, operations, market price protection, counterparty risk, renewable energy certificate devaluation, regulatory change, intermittency, and hedge effectiveness. The Altenex REPA addresses each of these and more, helping organizations maximize both environmental and economic value from their renewable energy efforts.
“Most companies don’t have their own proven PPA sitting around on a shelf,” said McIntyre. “The contractual protections of the buyer’s interests included in the Altenex PPA provide a high level of confidence for our clients’ senior leadership and help them move forward.”“This move by Altenex evidences Edison Energy’s commitment to being the trusted advisor to large energy users,” said Allan Schurr, president of Edison Energy. “This is about what is best for our customers and the industry.”