eAUCTION
Complete auction process manager
Complete auction process manager
At eRENEWABLE, our eAUCTION platform streamlines the PPA and VPPA process by offering optionality, transparency and real-time pricing to help get the best financing terms available for our clients. With our comprehensive approach, the eAUCTION Platform and its Last-Look feature ensures your auction delivers the best possible pricing for your PPA or VPPA project.
Our eRENEWABLE team manages the auction process completely, including:
Benefits of Our eAUCTION platform:
Whether you’re looking for a new project partner for building or financing; or you need to find qualified offtake prospects for an existing project, here is a glimpse at our auction functions:
A project owner will offer uncommitted power from an already-operational project. As these projects have already been built, the project owners can offer shorter terms than would be required for assets still under development in the form of one to five-year tenors.
Buyers will have the option during the auction to state the quantity and desired term they have an interest in.
The renewable project owner has an existing project in PJM with a nameplate capacity of 100MWs. They have already sold 70MWs of the 100MWs under a different PPA, so the auction will be for the 30MWs remaining uncontracted. The renewable project owner has set a minimum quantity they will contract for with a buyer at 5MW. During the VPPA auction, the buyer will show the volume they are bidding on ranging from 5 MWs to 30MWs and will be able to show a price for any or all terms offered. Traditionally those terms will be one, two, three, or five years.
A renewable project developer offers a renewable energy project that has not yet been built. In contrast with the merchant auction option, the terms of this type of agreement are much longer, as projects currently in development need longer-term agreements in order to secure financing from investors; tenors can range from 7 to 25 years.
Also, in contrast to the merchant auctions, new project auctions will typically start at lower reserve pricing than merchant project auctions, due to their newer, more efficient generation technology.
Buyers will have the option to state their desired quantity in this PPA/VPPA auction.
The developer is building a new 100MW plant in ERCOT that will be operational by the end of 2021. Their minimum quantity they will contract with a buyer for is 10MWs. This gives the buyer the right to show a price they will pay for any volume ranging from 10 to 100MWs. Each contract will be for a fixed tenor, established by the developer and known to the buyer before the auction begins.
In both the Merchant Auction and the New Project Auction, the buyer can retain all the Renewable Energy Credits (RECs) associated with the generated energy contracted under the PPA or Virtual PPA.
An entity owning property or looking to procure power for example who will solicit bids from developers and/ or producers for the most cost- effective price for their project or procurement. In turn, the auction brings developers and/or producers to participate and bid on volume and pricing for the project. After the bidding has closed, the buyer then has the information they need to make an educated decision. Our eAUCTION Platform expedites the RFP process and brings the market to the buyer.
There are different ways to structure a VPPA including aggregating the total consumption for all locations into one large VPPA. For instance, if you have 18 locations over several states that total 100 MW total, we can help structure a 100 MW VPPA that will cover all locations. Or we can stretch the VPPA out – it can be broken down into a series of 25 MW VPPAs that total 100 MW and it spreads the risk for the multiple rather than one large one. It allows for fewer contracts (1-4 in this case) and with the larger volumes, the buyer receives a more efficient price than pricing a VPPA for each individual location.
A midstream oil and gas company owns 100 acres of land in West Texas. They’re going to build a 15 MW solar array. The eAUCTION Platform allows them to bring the developers to one place and provide both their volume and pricing and it helps accelerate the project development process.
Learn more about our eAuction Platform and how we can help you reach your PPA, VPPA and Sustainability goals.
