Altenex, an Edison Energy company, announced the availability of PowerBloks™ — a first-of-its-kind renewable energy power purchase agreement (PPA) structure for commercial, industrial, and institutional electricity users.
PowerBloks is specifically designed to meet the needs of large and mid-size energy users by providing smaller and shorter duration renewable capacity offtake. The result is a fundamental shift in the way renewable energy is purchased and a potentially dramatic expansion of the United States’ renewable energy market.
“Many organizations are attracted to wind and solar energy to decrease energy costs, reduce risk, and meet organizational sustainability goals, but until now, options for renewable energy purchasing have been limited to only the very largest energy users given the size and duration of the power purchase agreements,” said Allan Schurr, president of Edison Energy. “Through PowerBloks, Edison Energy is taking the next step in helping organizations with smaller energy demands benefit from purchasing off-site renewables. It’s a key product in our Energy-as-a-Service model, where we offer tailored solutions to meet each client’s unique needs.”
PowerBloks enables organizations of all sizes to purchase smaller blocks of power that are matched more closely to localized demand and have the flexibility to contract for power on the customer’s timeline, as opposed to being dependent on the renewable project’s construction and commercial operation schedule. Whereas a traditional corporate PPA might require a purchasing commitment of 100 MW and a 15-20 year contract term, PowerBloks are available in 5-10 MW increments and 10 year terms.
“We believe PowerBloks is an appealing solution for a much wider range of commercial and industrial companies and institutions such as universities, local governments, and healthcare systems, many of which have smaller energy loads than would readily align with a traditional PPA,” said Duncan McIntyre, president of Altenex. “Many of these organizations have been unable to participate in the renewable energy market because they can’t meet the requirements of a traditional PPA. And the current site aggregation strategies have been challenging. PowerBloks changes that.”
“We’ve also seen interest from larger corporate customers that are attracted to the flexible offtake sizing and 10-year terms,” McIntyre said. “We think that this structure will bring new participants to the renewables market and give current participants another strategic option for this cost effective supply.”