January 10, 2017

PowerBloks™ Revolutionizes Renewable Energy Purchasing

By Edison Energy

The commercial and institutional (C&I) renewable energy market has expanded dramatically over the past five years and has become the main driver behind renewables’ domestic acceleration. In a recent study, 72 percent of corporations are “actively pursuing renewable energy procurement.” A wide range of innovative financing options and tax credits that significantly reduce upfront costs have helped facilitate market growth.

However, most off-site renewable energy efforts have been necessarily focused on the largest companies and institutions. Renewable energy project developers have required long-term off-take commitments — typically 15-25 years — investment grade credit, and large off-take commitments. The number of organizations that can absorb the entire production of a 100-200 megawatt (MW) wind farm is limited and existing aggregation models — in which multiple off-takers would divide a project’s output into more manageable sizes — come with their own challenges. And long-term off-take requirements remain a significant barrier for many organizations of all sizes.

Today, Altenex, an EDISON ENERGY® Company, announced the general availability of PowerBloks: a new PPA structure specifically designed to meet the needs of mid-size organizations — companies, colleges and universities, health care systems and municipalities — as well as larger energy buyers.

  • Scale: PowerBloks offers guaranteed availability of smaller units of renewable energy; typically in 10 MW tranches. This immediately expands the number of organizations eligible to participate in the U.S. renewables market.
  • Shorter Terms: PowerBloks offers 10-year guaranteed contracts. Many organizations prefer shorter terms compared to more traditional 15-20 year PPA durations and will find it easier to secure internal approval for shorter transactions.

PowerBloks also makes sense for large corporations. For companies taking a portfolio approach to renewable energy sourcing, PowerBloks provides additional flexibility — geographic, project, term, etc. — within a comprehensive strategy.

PowerBloks’ combination of right-sized scale and shorter terms represents an offering that simply does not exist anywhere in the renewable energy market. With this rollout, our hope is that we will see a significant expansion of renewable energy adoption by organizations of all sizes.

Any marketing or solicitation included herein for or related to a National Futures Association jurisdictional activity is being made by and on behalf of our affiliate Altenex. Altenex is registered as an Introducing Broker with the NFA and additional information on Altenex is available at nfa.futures.org