Cost-effectively decarbonizing companies with bespoke renewable electricity power purchase agreements
Simplifying, Accelerating, and Reducing the Cost of Purchasing Renewable Electricity and Environmental Attributes
Corporations purchase renewable electricity and Environmental Attributes (carbon offsets, RECs, etc.) from large-scale renewable energy projects to cost-effectively achieve net-zero carbon emissions and/or reduce their exposure to rising carbon and electricity prices. However, to date, the process of identifying transaction-ready large-scale renewable energy projects, determining the most valuable project with which to transact, and entering into bilateral agreements to purchase the renewable electricity and/or Environmental Attributes from the project is intricate, slow, and expensive.
We simplify, accelerate, and reduce the cost of purchasing renewable electricity and Environmental Attributes for our Members through process of:
Educating
Members by providing a 30-page market-specific electricity, carbon, and virtual power purchase agreement market report.
Guaranteeing
Results for our Members, providing them with the opportunity to exit at no cost if predetermined sucess metrics aren't achieved.
Eliminating
Members upfront third-party costs for market education, contract origination, and financial analysis.
Screening
All available renewable energy projects on key metrics such as risk, timeline, and value to provide Members with access to low-risk transaction-ready and high-value opportunities.
Improving
Members economic analysis by providing access to bespoke financial models to evaluate multiple scenarios and create detailed cash flow projections.
Adjusting
Contract terms to meet the unique needs of our Members by offloading risk and/or allocating risk to the party best positioned to manage it.
Wanting to enhance your understanding of electricity market revenue streams or regulations?
With a unique combination of knowledge in the electricity and carbon markets combined with financial expertise, Zenith Power can help accelerate your project development process and investment analysis.
Electricity market rules are continuously evolving to adapt to increased renewable energy penetration levels and the integration of energy storage projects. Following these regulatory changes and understanding their implications on your project’s economics is essential.
Zenith Power can support your team by:
- Monitoring and reporting on regulatory developments;
- Conducting data analysis on historical and forecasted electricity market pricing;
- Explaining the current provincial regulation on carbon pricing and advising on a carbon monetization strategy; and,
- Establishing a strategy to hedge market-based revenue streams and sourcing electricity off-take agreements in Alberta.
Why Do Corporations Enter Into Power Purchase Agreements?
1) In some markets, the cost of renewable electricity has fallen below both the current and forecasted market prices of electricity, making the forecasted economics of PPA transactions profitable;
2) PPAs provide protection against rising electricity costs, as the higher the market price of electricity the more profitable the PPA becomes;
3) PPAs provide protection against rising Environmental Attribute (Carbon Offset or Renewable Energy Certificate prices, as PPAs provide access to a fixed price and stable long term supply;
4) PPAs provide a scalable method for corporations to offset costly or hard-to-abate carbon emissions; and,
5) They enable corporations to achieve net-zero carbon emissions through a single and immediately actionable transaction.
Who Else Is Using PPAs?
Zenith supported Shaw Communications by providing them with market education on power purchase agreements, as well as the electricity and carbon markets in Alberta. Following this, Zenith led the process of identifying and screening potential projects with which to transact, soliciting offers from project developers, and evaluating bids, resulting in Shaw executing a 15-year PPA with Capital Power that was announced in January 2023. In addition to Shaw, the corporations on the left have all leveraged power purchase agreements to purchase electricity and/or Environmental Attributes from renewable energy projects in Alberta.
Who Else Is Using PPAs?
Zenith supported Shaw Communications by providing them with market education on power purchase agreements, as well as the electricity and carbon markets in Alberta. Following this, Zenith led the process of identifying and screening potential projects with which to transact, soliciting offers from project developers, and evaluating bids, resulting in Shaw executing a 15-year PPA with Capital Power that was announced in January 2023. In addition to Shaw, the corporations on the left have all leveraged power purchase agreements to purchase electricity and/or Environmental Attributes from renewable energy projects in Alberta.
How To Secure A Renewable Energy Power Purchase Agreement?
1) Click on the “Become a Member” button below to arrange an introductory call and have any questions about renewable energy power purchase agreements answered;
2) Customize your procurement goals and register your interest to gain access to our Canada-specific renewable energy power purchase agreement market education report;
3) Evaluate actionable opportunities with the help of our proprietary models and industry expertise;
4) Review agreement terms; and,
5) Execute agreement.
Seeking to strengthen your team's financial modelling capabilities?
Zenith Power takes pride in creating user-friendly, visually appealing, and bankable financial models that simplify your investment decision-making process.
Microsoft Excel can be a fantastic tool when its functionalities are used as intended. Unfortunately, most users have no formal training on this platform, which can result in mind-numbing spreadsheets of information, or worse, misinformed investment decisions. Whether it’s tracking a project development budget, creating a bottom-up capital expenditure model, conducting cash flow analysis, evaluating project economics, or running multiple project design and financing scenarios, Zenith Power can support your team’s renewable energy investment decision making process by creating robust, visually appealing, and user-friendly financial models and investment decision making tools.