Renewable energy strategy and power purchase agreements
Renewable energy targets are now a business imperative and a board-level priority. We help deliver long-term cost savings whilst also meeting ambitious renewables targets.
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 organisation?
- How can I reach my organisation’s ambitious renewables targets, and at the same time achieve power price security and cost savings?
A strategic issue: EY conducted a global survey of senior executives at 100 energy-intensive companies with over US$1b each in revenues. The survey confirmed that renewable energy has become a strategic issue at the C-suite level of billion-dollar corporations, especially given that a significant – and rising – share of operating costs is being spent on energy.
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.
PPA implementation: long-term Power Purchase Agreements (PPAs) are an increasingly popular way for large corporates to reach ambitious renewables targets, and at the same time achieve power price security and costs savings.
How EY can help
The EY approach to providing renewable energy and PPA services
EY provides global PPA services including strategy formulation, project origination, structuring and evaluation, all underpinned by robust financial and commercial analysis.
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, Retail, Telecoms, Technology, Financial Services and Pharma, as well as some Public Sector organisations.
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||NDAs for short-list||Work to draft contract with Legal Advisor|
|Challenge existing targets and potentialy set new ones||Market sounding for prioritised market countries and contractual options||Prepare RfP tender document||Due diligence on commercial aspects of the contract|
|Assess countries across operating portfolio||Issue teaser to the market to assess developer appetite for corporate requirements||Approach the market with competitve tender||Negotiations with the developer|
|Evaluate various technologies||Financial modelling of initial inputs to develop case for change against BAU||Evaluate bids||For offsite PPA – negotiate sleeving arrangements with retail power supplier|
|Appraise available contractual options||Further NPV modelling against BAU||Finalise contract documentation|
|For offsite PPA – start discussions with licensed supplier|
Our latest thinking
Contact us to find out more.