Author: RPD


We are proud to share some exciting news about RPD’s growing commercial success.

2016 was transformative for RPD: our innovative medium-term contracts for slices of physical renewable energy plus RECs won significant new backing from major corporate buyers.

At year’s end, RPD’s total sales of green electricity topped 200,000 MWh with energy committed to customers from a diverse mix of renewable facilities in the mid-Atlantic states (PJM), Texas (ERCOT) and California (CAISO). The total value of the energy and RECs covered by RPD’s contracts is now over $7 million.

In 2016 we also opened a new sales office in Houston and recruited a top-flight management team with decades of energy industry experience: Eric Alam, our CEO; Mark Mancino, our VP of Sales, and Mike Adcock, our VP of Supply. This new management team has already put RPD on the map.

RPD has now established itself as the leading national provider of fractional green energy capacity to commercial and industrial customers from large renewable power installations. In 2017, we plan to accelerate our growth because we know that the great majority of corporate buyers do not need (and cannot afford) to contract for the output of an entire utility-scale wind or solar facility.

So please help us get the word out about RPD’s alternative green energy contracts. Follow us and link to us through our social media outlets on LinkedIn, Facebook, and Twitter; we will continue to share news and market information as the year unfolds.

Happy New Year!

Following this month’s Presidential election, some observers have suggested that the U.S. renewable energy industry may face stiff head winds. Existing tax credits could be revisited, limits on global warming pollution are in jeopardy, and renewable energy targets might be relaxed.

On the other hand, others believe that if the federal commitment to reduce global warming pollution stalls or is diminished, voluntary actions to curb greenhouse gas emissions – such as green power purchases – will increase. After all, we know that a large majority of Americans, regardless of political party, have a positive view of wind and solar energy.

During the next year, we will begin to get a better sense as to which of these perspectives is more accurate. Whatever the outcome, however, we strongly believe that RPD’s business will continue to grow for one simple reason: our products provide major energy users with a valuable choice.

Some buyers will choose RPD’s green energy contracts primarily for economic reasons, for example, because they want to hedge their energy costs, reduce market risks or lock in an attractive price.

Others will buy our renewable products primarily for environmental reasons. They will do so to meet corporate sustainability targets, to reduce their carbon footprint or to promote a greener brand and build good will among employees and customers.

No matter the reason, RPD will continue to gain market share because energy users want choice. They want to be able to buy electricity with contracts that are right sized – in terms of volume and term – for their own needs. And they want green contracts that are price competitive with grid power, and structured to minimize their risk and meet their objectives.

In short, because RPD’s green energy contracts simply make good business sense, we know that they will be in demand under our next President just as they have been under the current one.

The last year was a good one for RPD. Our customer base is growing and our Houston office is open for business. So as you work through the implications of this election, we welcome the opportunity for a dialog about how RPD can provide a better energy choice for your company in the year ahead.

 

It is always hard to balance corporate sustainability and fiscal goals. But, when it comes to buying electricity, it has recently become much easier. The window of opportunity might not last long, however.

Pricing for renewable power is currently at or near historic lows. Below is a chart showing prices in some major power grids.

ERCOT 24/7 3 Year Supply 5 Year Supply 7 Year Supply
2013 Price 38.08 35.69 35.77
2014 Price 35.21 34.60 35.20
2015 Price 31.94 33.76 35.37
Current 32.50 34.22 35.81
PJM West 24/7 3 Year Supply 5 Year Supply 7 Year Supply
2013 Price 44.17 42.63 41.38
2014 Price 43.75 42.00 40.86
2015 Price 41.55 40.32 39.68
Current 39.48 38.88 38.76
PJM East 24/7 3 Year Supply 5 Year Supply 7 Year Supply
2013 Price 47.15 45.86 44.89
2014 Price 47.22 45.54 44.69
2015 Price 45.36 44.23 44.02
Current 43.17 42.89 43.49

RPD has pioneered medium term (3-10 year) purchase options for renewable power, and we have several methods of tailoring renewable supply to a company’s load:

  • Deliver a fixed volume block of renewable power at a wholesale location to your current retail provider (who manages the balance of supply, load following, billing, etc.)
  • Deliver the block to a utility location to your current retailer
  • Provide 100% of your demand with renewable power and utilize our retail partner Xoom Energy to provide the balancing, etc.

For companies currently under a supply contract, RPD can also lock in low cost renewable supplies now and start delivery when your current term supply deal ends.

Current low pricing levels offer a fantastic opportunity for securing green power. Please get in touch if you would like a specific price quote for your volumes and locations.

This year has seen more than 30 corporate renewable power transactions. In total, the deals reflect well over 3 GW of wind and solar capacity. Here is a comprehensive chart.

Corporate and Institutional PPAs for Renewable Power

To provide some perspective, about 11 GW of new utility scale wind and solar capacity is expected to come online in the U.S. in 2015.[1]

Among the other most notable developments of the year, 49 of America’s largest companies have now signed onto the Corporate Renewable Energy Buyers’ Principles, the RE100 initiative has 53 signees, and 154 companies have signed the American Business Act on Climate Pledge. There is a palpable sense of momentum in the industry, and the importance of these corporate commitments on achieving the strong COP21 outcome that emerged from Paris earlier this month cannot be overstated.

Yet, the Paris climate agreement is in many ways only the first step. Business action will remain critical to helping nations achieve their ambitious carbon reduction targets.

This is why RPD believes that corporate renewable power transactions should not be a trend limited to America’s largest corporations. Businesses of all sizes should be able to access the benefits of direct green power purchases, and that is why RPD pioneered medium term (3-10 year) purchase options for renewable power that are tailored to a company’s load. The agreement we concluded with Intuit, announced this September, provides one example of this approach.

As 2016 commences, please get in touch if you would like to learn more about how RPD’s options for buying green power can work for your company.

[1] Source: EIA, http://www.eia.gov/electricity/monthly/xls/table_6_03.xlsx and http://www.eia.gov/electricity/monthly/xls/table_6_05.xlsx

Read full press release on Businesswire

Intuit Inc. (Nasdaq: INTU) is switching its Dallas-area campus to wind power as part of the company’s ongoing commitment to reduce greenhouse gas emissions and improve energy efficiency.

The Intuit site in Plano, a Dallas suburb, houses about 500 employees in the company’s Accountant and Advisor Group, which offers products and services to professional accountants. The location is one of Intuit’s largest electricity users, and is the first to be powered through an offsite renewable energy agreement. Following the switchover on Oct. 1, the facility will be 100 percent powered by wind energy, reducing its carbon footprint to zero.

The electricity and associated Renewable Energy Certificates (RECs) are being sourced by Renewable Power Direct, LLC, a wholesale green energy marketer, under a multi-year agreement with an existing Texas wind farm. RPD’s retail electricity partner, XOOM Energy, LLC, will provide the retail service delivery to Intuit’s campus.

“Electricity usage accounts for almost 40 percent of Intuit’s overall carbon footprint,” said Sean Kinghorn, Intuit’s senior sustainability program manager. “We have set a goal of reducing our absolute carbon footprint by 20 percent by 2020 with a baseline year of 2012. RPD’s ability to creatively supply our Texas campus with 100 percent clean power will significantly reduce our company’s carbon footprint and is one of several steps that we are taking to increase our use of on-site and off-site renewable energy.”

A growing number of companies are realizing that they can convert to wind power without investing in expensive facilities. “Our business with Intuit shows that companies can now get the renewable power they want without having to buy a whole wind farm or solar park,” said Phil Minick, RPD’s director of marketing. “RPD expects to see similar types of green power purchases by other major brands soon.”

The record level of voluntary renewable power buys by corporate America could significantly help many states, such as Texas, Oklahoma, Illinois and North Carolina, that have considerable coal-fired generation, meet the greenhouse gas (GHG) reduction standards mandated under the EPA’s new Clean Power Plan (CPP).

The EPA’s Plan adopts state-by-state guidelines for reducing CO2 emissions from existing power plants — reductions must be roughly 32% below 2005 emissions by 2030, on average — but leaves it up to each state to decide how best to meet these standards. States may adopt a mix of strategies, including greater use of lower carbon generators (such as natural gas-fired power), more efficient plants, and expanded use of renewable generation, such as wind and solar power, which are also eligible for special federal incentives.

Although the EPA’s new mandates apply directly to the public sector — that is, to individual states and certain generators subject to EPA regulation — the rules are designed to impact the mix of power used by private consumers (business and households) and, thereby, the total volume of GHG emissions associated with U.S. electricity generation.

Thus, the more emission reductions that the private sector can achieve in any given state through voluntary action — by installing on-site solar or by changing to electricity suppliers that only deliver renewable power — the easier it may be for that state to meet its obligations under the CPP. In other words, while the Clean Power Plan does not say much about this, demand-side consumer initiatives, as well as supply-side actions, can make a significant contribution to reducing overall power sector carbon emissions. And corporate PPAs have begun to show the way.

That was evident earlier this Summer when a flurry of announcements from companies like HP and Amazon, pushed long term corporate purchase commitments for renewable power over the 1,500 MW mark, already exceeding last year’s record level of business deals for green power.

Corporate and Industrial Green PPAs

Download larger version (pdf)

As we wrote in an April post, falling prices for renewable power and rising corporate sustainability goals are leading more Fortune 500 businesses to directly buy green electricity.

While terms for these PPAs vary, the seller typically develops, owns, and operates the renewable facility, and the buyer agrees to purchase the plant’s output at a negotiated price for an agreed term (typically 15 to 20 years). The size and type of long term commitment required for these deals have put off many prospective renewable power buyers, however.

At RPD, we believe that all business customers should be able to access the benefits of direct green power purchases. That is one reason why RPD developed medium term (3-10 year) PPAs for green power. RPD can offer shorter terms and smaller volumes by sourcing power from a mix of existing and new facilities that are not fully subscribed. RPD’s arrangements still help to finance additional renewable projects but they don’t require the customer (i.e., the end user of the power) to foot the whole bill for each project. The costs are spread over several off-takers.

Please get in touch if you’d like to learn more about how RPD can help your company switch to green power.

Renewable Power Direct (RPD) announced an alliance today with XOOM Energy to provide commercial and industrial customers with delivery options for renewable electricity in the Texas, New York, New England and Mid Atlantic markets that are open for retail access.

Read the full press release here.

During the last year, we’ve met with many prospective customers and attended several conferences and workshops for buyers and sellers of renewable energy. One thing we’ve heard time and again is this: The great majority of potential customers, including even fairly large companies, cannot afford and generally do not need the output of a whole off-site wind or solar farm.

So what are the options for these buyers?  RPD’s new discussion paper looks at several ways to address the “less than total wind farm” dilemma. It also profiles RPD’s own approach which is based on dividing the capacity of recently built (but under-utilized) wind and solar facilities into multiple blocks of power based on the buyer’s load and desired contract term. RPD then works with customers to negotiate follow-on agreements for additional renewable power projects.

This two-step approach has multiple benefits for buyers, not the least of which is that a buyer can quickly switch from grid power to green power and reap the associated economic and environmental benefits. This can be done without waiting for a new facility to come online or having to contract for the full output of a project.

Please get in touch if you think RPD’s approach to buying green power may work for your company. We would also welcome your comments and suggestions on the new discussion paper.

Falling prices for renewable power and rising corporate sustainability goals have led more Fortune 500 businesses to directly buy green electricity. The trend started a few years ago, and 2015 may see the largest number of deals yet.


ppa

Larger version (pdf)

With nearly 750 MW of new power purchase agreements (PPAs) announced through the first quarter, 2015 is on track to surpass last year’s banner demand for 1300 MWs of new generation.

While terms for these PPAs vary, the seller typically develops, owns, and operates the renewable facility, and the buyer agrees to purchase the plant’s output at a negotiated price for an agreed term (typically 15-to 20 years). This type of long term commitment has put off many prospective renewable power buyers, however, because they lack the resources or risk tolerance.

That is one reason why RPD has developed medium term (3-10 year) PPAs for green power. RPD can offer shorter terms by sourcing power from a mix of existing and new facilities that are not fully subscribed. RPD’s arrangements still help to finance additional renewable projects but they don’t require the customer (ie. the end user of the power) to foot the whole bill for each project. The costs are spread over several off-takers.

Please get in touch if you’d like to learn more about how RPD can help your company switch to green power.

Renewable power deals by Apple, Google and Kaiser Permanente show innovative approach – and RPD can make it fit your firm, small or large.

Three large, long-term corporate purchases of renewable power by Apple, Google and Kaiser Permanente made national headlines this February.

These transactions, which total over 300 MW of new solar and wind facilities in California, underscore the growing commitment of American business to climate action. The electricity deals also reflect an innovative approach to buying renewable energy that most media reports overlooked. In each case, it appears the green power will not be physically delivered to the buyers’ retail locations. Instead, the electricity will simply be added to the regional grid using a contract structure that locks in a low purchase price or green energy hedge for the buyer.

This approach is typically based on a so-called “contract for the differences” or CFD, a model that is more fully explained below.

While Google and Apple signed on for very large 20 year deals, customers don’t need to go big to make a CFD approach work.  The same structure can be used for much smaller and shorter term arrangements. By scaling the financial and volumetric commitment to a customer’s needs (for example 5 to 20 MW and 10 years or less) CFDs can open the  door for hundreds of companies to buy green electricity and hedge their energy costs. That’s where RPD can help. 

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