Renewable energy strategy and power purchase agreements

In Power and utilities

Renewable energy targets are now a business imperative and a board-level priority. We help clients deliver long-term cost savings while also meeting ambitious renewables targets – within wider carbon emission reduction goals.

What EY can do for you

We can help you answer these questions:

  • What is my opportunity within renewable energy?
  • What is the right renewable energy strategy for my organization?
  • How can I reach my organization’s ambitious renewable electricity targets, and at the same time achieve power price security and drive cost savings?
  • How can I also increase the proportion of renewable heat while maintaining the quality of ambient and process heat?

A range of options: renewable energy opportunities will exist onsite and offsite across multiple technologies and countries. Companies typically need a portfolio of renewable options to reach strategic targets, achieve significant savings and mitigate various risks across heating and cooling, and electricity.

PPA implementation: long-term Power Purchase Agreements (PPAs) are an increasingly popular way for large corporates to reach ambitious renewable electricity targets, and at the same time achieve power price security and cost savings.

How EY can help

The EY approach to providing renewable energy advice:

EY provides global PPA services including strategy formulation, project origination, structuring and evaluation, all underpinned by robust financial and commercial analysis – and reflecting increasing corporate interest, we can now encompass heat and supply chain emissions in our advisory scope too.

EY has first-hand PPA experience (physical and virtual structures) in multiple countries across Europe, North America, Latin America, and Asia-Pacific, for companies in a wide range of industries: consumer products, manufacturing, retail, telecoms, technology, financial services and pharma, as well as some public sector organizations.

EY analysis reveals top 30 PPA markets

Download EY’s latest corporate PPA Index (pdf) published in RECAI – which uses key parameters from four pillars to analyse and rank the growth potential of a nation’s corporate PPA market.

The table below illustrates some of our renewable energy strategy and PPA implementation services through a typical corporate journey. 

Renewables Strategy – 90 days

PPA Implementation – 120 days

Opportunity identification and strategy development
Market test and business case development
Competitive tender/ RfP process
Contract negotiations and project implementation
Benchmark current “baseline” energy state against peers Analyse short-listed countries/ technologies Non-Disclosure Agreements for short-list Work to draft contract with Legal Advisor
Challenge existing targets and potentially set new ones Market sounding for prioritized market countries and contractual options Prepare RfP tender document Due diligence on commercial aspects of contract
Assess countries across operating portfolio Issue teaser to market to assess developer appetite for corporate requirements Approach the market with competitive tender Negotiations with developer
Evaluate various technologies

Financial modelling of initial inputs to develop case for change against business as usual

Evaluate bids For offsite physical PPA – negotiate sleeving arrangements with retail power supplier
Appraise available contractual options   Further Net Present Value modelling against business as usual Finalize contract documentation
    For offsite physical PPA – start discussions with licensed supplier  

Contact us

Contact us to find out more.