Table of Contents:
Market Insight and Recent Deals:
State of the Market
As 2016 comes to a close, the corporate PPA market is outperforming expectations thanks in part to a strong fourth quarter. Q4 saw a total of 642 MW in closed deals, bringing the total market to 1.56 GW this the year, exceeding 2014’s 1.18 GW by 32%. BRC members can take credit for a strong year, as the majority of transactions involved a BRC buyer, developer or intermediary. The outlook for 2017 is positive as well. At BRC’s November conference in Detroit, MI, the election results were front and center in many participants’ minds. While concerns remain around policy and regulatory certainty for the broader renewables industry, the corporate renewable procurement sector appears stable and forward-looking. 25% of attendees at the BRC conference said their renewable energy strategy in the U.S. would see more engagement after the elections, and 67% said they did not anticipate any substantial change. Additionally, today, 45% of F500 companies have sustainability goals. As levelized costs for renewable energy are at record lows, per Lazard’s LCOE v10.0 report, the business case for corporate PPAs remains strong.
Watch BRC’s Hervé Touati discuss corporate procurement at NASDAQ
Q4 in Review: Recent Highlights
BRC Nominated “Company of the Year”
Thanks to your support and active presence in the renewable market, BRC won a prestigious “company of the year” nomination from Utility Dive. This year’s overall winner was Berkshire Hathaway Energy – arguably a slightly bigger outfit than the BRC. Co-nominees were Tesla Motors, Duke Energy and NextEra Energy – the latter are both BRC sponsors. To have won this nomination as a nonprofit market participant is a high honor for our community, and a testimony to the achievements of BRC’s buyers, developers and intermediaries.
Google Goes 100% Renewable
Google, the world leader in corporate renewable procurement, announced in early December that it will power its operations with 100% renewable energy by the end of 2017. Google also published a detailed whitepaper outlining how they got to 100% – a valuable resource for companies seeking to understand and replicate Google’s success. The white paper also describes what will come next: region-specific, 24/7 clean, zero-carbon energy – a topic we plan to explore further at BRC’s Spring conference.
Based on the input we received during our 2016 East Coast Conference in Detroit, MI, we published our Next Steps Deck – which details our work plan for the next six months. If you want to participate in one of our task forces, please contact Ian Kelly to discuss the specific next steps and/or Mark Porter to discuss membership: firstname.lastname@example.org and email@example.com.
[Members Only] New Products: RFP & PPA Term Sheet Template
Available now to members, BRC just released its Request for Proposal (RFP) and PPA Term Sheet templates. These tools provide corporate buyers with a “starting point” to understand the range of terms typically present in an RFP issued to project developers or a PPA term sheet. BRC developed these templates with significant input from a number of BRC members including experienced buyers, developers, investors, market-makers, and law firms with substantial experience in these transactions, specifically:
- Project developers that have developed an aggregate of 36 GW of wind and solar capacity
- Project financiers that have invested an aggregate $48 billion in renewable energy projects
- Renewable energy transaction lawyers that have represented corporate buyers, project developers and project financiers in deals for more than 3 GW of wind and solar capacity
For more details, members can log into BRC’s information portal: http://marketplace.cfapps.io/pages/information_portal and non-members can contact Mark Porter to discuss membership: firstname.lastname@example.org
BRC’s 2016 East Coast Conference – Detroit, MI
One week after the presidential election this year, more than 200 renewable market participants gathered at GM’s headquarters in Detroit, Michigan, for BRC’s semi-annual membership conference to discuss the current state of the corporate renewable energy market and how to bring corporate renewables procurement to the mainstream. The attendees consisted of corporate and other non-utility buyers interested in making connections and learning best practices, along with developers and service providers looking at keeping a finger on the pulse of the market. 94% of 2016 corporate deals (by MW) were represented at the conference (either on the buy or sell side). The two-day event allowed market participants to join forces on identifying the real issues facing the market right now and proposing directions to address them.
The market showed significant renewal in 2016. Half of the buyers were signing their first offsite renewable power purchase agreement (PPA). More than half of the successful developers in 2016 were also signing their first corporate PPA this year.
While a wide range of issues and potential solutions were discussed in Detroit, four key themes emerged.
We anticipate that the market will continue to grow at a steady pace, as corporate buyers are more determined than ever to fulfill their commitments to sustainability and the cost of renewable energy continues to plummet. Coming out of the conference, BRC is more committed than ever on educating new buyers and opening up new market opportunities (aggregation, internationalization) as the most important steps to accelerate the renewable energy transition.
- Experienced buyers have a strong body of knowledge of how to close deals and are committed to accelerating the learning curve for new buyers
- New buyers find that a corporate road map would be very helpful to navigate their internal and external project paths
- Buyers with smaller load requirements are teaming up to capture aggregation opportunities
- International renewable markets remain elusive due to lack of information and case studies
Our work in 2017 will kick off with our next Buyer’s Bootcamp in Basalt (near Aspen) in February 2017. If you are interested in participating, send us an email at email@example.com.
For more detailed information see the BRC Next Steps Deck and our event blog recap: “In Motor City, a Rising Industry Keeps the Lights On.”
Celebrating Recent Deals
Congratulations to our members (in bold) on their most recent deals.
We would appreciate an introduction to Virginia Solar.
An honorary mention goes to MIT/Boston Medical Center/Post Office Square Redevelopment Corp. for their recent landmark aggregated clean energy deal.
We understand many deals are in the pipeline, and we look forward to supporting our members in their deal announcement strategy. Please contact BRC's marketing manager, Kevin Haley (firstname.lastname@example.org), to discuss how the BRC can support.
|See You Soon!
BRC Bootcamp II
February, 2017 near Aspen, CO
To request information on attendance, please contact Mark Porter at email@example.com
Want to Host BRC?
BRC is currently planning its Spring conference in partnership with the Renewable Energy Buyers Alliance (REBA). We are seeking a host company for this event in the May/June timeframe. With an audience of 200+ in regular attendance at BRC’s conferences, this is a standout opportunity to highlight your company’s work and leadership in the corporate procurement space. If you are interested in hosting this convening in 2017, please contact Lily Donge at firstname.lastname@example.org
BRC and RE100 are teaming up in January for a webinar on the state of the market, new tools and market intelligence. Mark your calendars today: January 19, 2017 at 11:00 am ET.
Your Events: Spread the Message
If you speaking at an event this coming year on the topic of corporate procurement, let us know. We would be happy to provide you with updated market statistics and information on BRC to help spread the message on corporate procurement. Kevin Haley is your point-of-contact: email@example.com
Click here to view all of the BRC’s upcoming events.
BRC’s Product Development Pipeline
The BRC delivered an RFP template for buyers to issue to project developers and a term sheet template for buyers and developers. Both templates are available on our website.
In the next six months, the BRC will focus on six activities:
If you are interested in contributing to any of these initiatives, please contact Ian Kelly at firstname.lastname@example.org.
- A buyers' bootcamp in Basalt in February – three days in the Aspen Valley to bring new buyers fast along the learning curve.
- A "corporate roadmap" – reorganizing the BRC's online resources (both new and existing content) in a more accessible and useful way for corporate buyers.
- Marketplace enhancements – implementing new economic analysis tools into the BRC Marketplace and providing data streaming services.
- Transactions abroad – continuing our work to establish a new transaction structure in China.
- Additionality – exploring the possibility of an online additionality scoring mechanism to encourage innovation.
- Aggregation – developing tools and approaches to make it easier for buyers to join forces on the same deal.
News from the BRC Marketplace
Now featuring 21 GW of renewable energy projects, the BRC Marketplace has continued to grow along with the BRC's membership, and now includes representatives from nearly 150 leading organizations.
Of particular note, buyers have begun taking advantage of the system's Project Request feature to quickly and easily gather a list of potential projects that meet their criteria. As observed by one such company, “I have received many responses to the requests posted in the Marketplace. I am very optimistic that the Marketplace will improve the speed at which we connect with suppliers.”
To access the BRC Marketplace, please visit marketplace.businessrenewables.org (members only). Those with questions should contact Steve Abbott at email@example.com.
Welcome to our new BRC members who have joined since the October 2016 newsletter! We’ve grown from 28 founding members and sponsors in November 2014 to 175 members today.
New buyer members include, among others, Aligned Energy, Best Buy, Bridgestone, Comercia Bank, Novo Nordisk, Organic Valley, The Raytheon Company, Sabey Data Centers, Tower Companies, UCLA Health System and four anonymous members, including a high profile internet services provider, an advanced technology engineering company, and a broadcasting and cable television company
New sponsors include, among others, American PowerNet, Carolina Solar Energy, CME Group, CohnReznick, LS Power, and Stoel Rives LLP.
Past Newsletters: View past newsletter issues online here.
Contact Us: Your feedback on this newsletter is most welcome. Please contact Kevin Haley (firstname.lastname@example.org).
Disclaimer: the BRC newsletter is intended to provide factual information. It is based on publicly available information. No representation is made with respect to its accuracy or completeness. None of the information can be construed as investment or accounting advice. RMI reserves the right to include, change, or edit any content.