Citi has entered into a new contract to purchase clean, renewable energy for a multi-year term at its Roanoke, TX, data center. The contract will provide Green-e certified renewable energy for 50 percent of the data center’s power needs. This deal marked the first collaboration between Citi Realty Services (CRS), an internal unit responsible for the company’s facilities, and the Citi subsidiary — Citigroup Energy Inc. (CEI) — to meet its renewable energy needs. CRS and CEI worked with MP2 Energy, a Retail Electricity Provider with experience integrating sustainable solutions, to arrive at a structure that allowed Citi to fix its retail rate and utilize renewable power at an attractive price level.
“This deal will provide a renewable source of energy as well as price certainty to one of our key data centers,” said John Killey, Global Head of Operations for CRS. “It also demonstrates the value that comes from the close collaboration between CRS and Citigroup Energy and Citi’s commitment to sustainability across its own operations as part of its Sustainable Progress strategy.”
The contract takes into consideration the forecasted hourly energy consumption for the facility, which is comprised of a data center and service building.
In connection with the transaction, Matthew Adams, president of MP2, added, “MP2 is pleased to leverage our experience integrating retail energy products with renewable power sources to deliver a sustainable solution for Citi.”
“In this landmark renewable energy deal, we were able to work together to ensure that the various risks inherent in commodity markets are allocated based on which entity is best positioned to manage each one,” said Roxana Popovici, a managing director responsible for renewable power transactions within CEI. “As companies like Citi look to ramp up their purchase of renewable energy, structures like the one employed in this transaction will become increasingly important and will be critical to scaling the market for renewable energy.”
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
CRS is a division of Citi responsible for providing real estate support services to all Citi businesses. Citigroup Energy Inc. is one of the leading participants in the energy market today. Energy Risk Magazine has recognized CEI as Electricity House of the Year for the past two consecutive years, Emissions House of the Year in 2016 and Derivatives House of the Year for the past three consecutive years. A particular strength of CEI’s platform is in the renewable power market, where a large number of long-term transactions with projects, corporates and retail entities in recent years have made CEI a leading counterparty in that space. CEI’s level of client activity provides strong insight into current and future market dynamics, and allows it to offer a deep level of liquidity as well as wide range of risk mitigating structures at competitive price levels.