asia leds partnership - empowering the world's …...over 20 years market solutions 13+...
TRANSCRIPT
APX Copyright 2017
Approaches, strategies and
challenges for renewable energy
purchasing
L a r s K v a l e
A P X , I n c .
Empowering the
World's Transition to
Sustainable Energy
APX Copyright 20172
TERMINOLOGY
Attribute Certificateo Represents the renewable attributes from 1
MWh of generation
o Examples: TIGRs, RECs
Power Purchase Agreement - PPAo ‘Bundled’ agreement for renewable attributes
and power
Physical PPAo Power is delivered from seller to through grid
competitive with brown power
o Attributes (TIGRs) delivered in TIGR Registry
‘Virtual’/Contract for Differences PPAo Power is settled financially against power
wholesale prices
o Attributes (TIGRs) delivered in TIGR Registry
APX Copyright 2017
‘Regulated’ Market‘Unregulated’ market, i.e. retail
competition
Onsite Generation Onsite Generation (Power + TIGRs)
Attribute (TIGRs) only transactions Attribute (TIGRs) only transactions
‘Virtual’ (Contract for Differences) PPA
(‘Power’ + TIGR)
Physical PPA (Power + TIGR)
RENEWABLE PURCHASE OPT IONS
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VIRTUAL PPA
o Long-term PPA with corporate buyer allows
developers to raise finance
o By contracting directly with developer corporate
buyers can claim additionality
o Requires wholesale electricity market
o Corporation continues to receive power from
utility/retail supplier
Source: Rocky Mountain Institute
APX Copyright 2017
RENEWABLE PURCHASE STRUCTURES AND THE
“ADDIT IONAL ITY CONTINUUM”
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P O W E R
D E L I V E R Y
C A P I T A L F O R M A T I O NIndirect Direct
Virtual
PhysicalPRE-COD
Physical
PPA
Onsite
Genera-
tion
POST-COD
Physical
PPA
Attribute
only, i.e.
TIGRs
POST-
COD
CFD
PRE-COD
CFD
APX Copyright 2017
Milestones towards
Commend Operational
Date (COD)
Critical Terms:
– Length of agreement
– Credit Provisions
– Performance Assurances
Risk Allocation: Who
takes on market risk
(basis risk), delivery
risk, etc.?
Lower transaction costs
and lower post transaction
operational costs
How is power settled or
delivered?
ISSUES TO BE NEGOTIATED
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How to settle attributes
(TIGRs)
APX Copyright 2017
Over 20 years market solutions
13+ renewable and carbon registries worldwide
o Built entire US REC infrastructure, parts of
Canada and Mexico
o American Carbon Registry
o Verified Carbon Standard Registry
o Climate Action Reserve
o North American Renewables Registry
o TIGR Registry
4,000+ companies globally
o 100+ clients in Asia
36,000+ projects registered
Over 2 billion instruments transacted
Supports tradable markets valued in excess
of $1 billion
US based company with offices in New York,
Washington DC and San Jose, CA
Lars Kvale – [email protected]
APX BUILT THE US REC MARKET
INFRASTRUCTURE
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