Day 2 of the RE-Source 2018 Programme will feature thematic breakout sessions on topics such as Guarantees of Origin, risk mitigation, and much more
|08:30 – 09:00
||Registration & welcome coffee
|09:00 – 10:30
Thematic breakout sessions part 1
1a. Guarantees of Origin for renewable energy corporate sourcing
Guarantees of Origin (GOs) are the EU wide certificate for tracking the renewable nature of electricity which make them a critical part of all forms of renewable energy sourcing and accounting. These instruments are the foundation of product choice in the electricity market and understanding how they work is an essential basis for all parties sourcing or looking to source renewables. GOs fall into the instrument category of Energy Attribute Certificates (EACs) which are available in a growing number of markets around the globe.
This session is created in partnership with RECS International, the leading global association promoting the use and international standardization of EAC markets. The speakers will provide detailed information on the function and development of these systems in Europe and around the world, with special attention to recent legislation and the price developments. We will finish the session with a review of good practice and the expectations a corporate can have when procuring GOs for their renewable sourcing.
- Deep-dive in the function and history of Energy Attribute Certificate (EAC) markets in Europe, with the Guarantee of Origin (GO), and around the world. What are the governing principles of these systems and how do they work?
- Understand the GO in Europe and the policy and legislation upon which the system is founded. A look at the system providers, national issuers and Europe or national legislation.
- Looking at the market for GOs is an important aspect in all corporate sourcing decisions especially with price increases of larger than 100% in less than a years. A focus on the prices, volumes, trends and expectations will be reviewed.
- Focusing on consumer claim standards and understanding best practice versus good practice will help guide corporate sourcing discussions. The session will provide details on the standard setters and what they expect from corporate companies.
- Marie Christine Bluett, Director of Renewable Portfolio Management, The South Pole Group
Setting the Scene
- Pierre Tardieu, Chief Policy Officer, WindEurope
- Simon Braaksma, Senior Director, Group Sustainability, Philips International B.V.
- Dirk Van Evercooren, President, the Association of Issuing Bodies (AIB)
- Tom Lindberg, Managing Director, ECOHZ
- Thomas Eccard, Head of Green Markets, Central & Western Europe, Agder Energi
- Saptarshi Pal, Senior Originator, Statkraft
1b. On-site generation and energy storage
Many commercial businesses are now making the most of on-site generation. Having large land, parking lots or rooftop areas available at their sites means that they can benefit from “behind the meter” electricity at a significantly lower cost than grid supply. On-site can be used as a primary or back-up source of power and offers numerous advantages such as finance options that require little to no upfront investment and capital expenditures (CAPEX), the possibility of having a third party operating and maintaining installations, rather than developing the necessary internal expertise and having operational expenditures (OPEX).
On-site generation also creates opportunities for energy storage solutions, increasing flexibility for the off-takers and helping reduce peak demand charges and leverage generation on weekends and holidays.
In this session, we will dig deeper on the synergies with onsite technologies considering the current state of the market for battery solutions and the potential for storage to reduce on-site costs.
- What is the market for onsite generation and energy storage?
- Power Purchase Agreements for on-site installations
- Increasing the economic attractiveness of on-site generation through combination with battery storage: how storage can competitively support supply and offer cost effective solutions to firm up the variable supply from solar and wind?
- New offtake agreements for energy storage facilities, what terms should developers use?
- Combining solar, storage and diesel generation as part of a local grid-connected microgrid and Uninterruptible Power Supply package
- Robert Clover, Managing Director, FTI
- Matthias Taft, Member of the Board, BayWa AG
- Monica Mireles Serrano, Head of EU Affairs, IKEA Group
- Jan Jakob Peelen, Partner, Dentons
- Steve Jennings, Director of Commercial and Industrial, Anesco
- Marina Bylinsky, Manager Environmental Strategy & Intermodality, Airports Council International Europe*
- Patrick Monino, Vice President Energy Solutions, Eni*
- Aymeric Kormoss, Head of Sourcing & Supply, Eoly – Colruyt Group Energy*
1c. A zoom into the different PPA models and sourcing strategies
There are many different types of PPA structures. The exact structure of a corporate PPA will depend on the regulatory design of the relevant electricity market, the corporate buyer strategy and the capability of the off-taker. Corporate PPAs for new build projects are typically structured as long term virtual or sleeved PPAs. The prices can be fixed or be a discount to the market, possibly involving floors and caps. Length of the contract and volumes are also key factors defining the type of PPA.
This session will look into the drivers resulting in the various structures and help clarify the basic parameters to decide which type of PPA is more appropriate for each business case. Other important aspects, such as location and the possibility to sign PPAs across different countries (cross-border PPAs) will also be addressed.
- For the purpose of measuring the market, what is a corporate PPA (duration, maturity, procurement model, capacity contracted and location)
- Where to draw the line between physical and virtual PPAs?
- What are the drivers behind opting for either model?
- What are the different ways of accounting for each model?
- Where do cross-border PPAs fit?
- How the different models address the various risks (price, scheduling and balancing, etc.)
- Sonia Dunlop, Senior Policy Officer, SolarPower Europe
- Shalini Ramanathan, SVP Origination, RES America
- David Willemsen, Corporate PPA Solutions, Innogy Renewables
- Colin Spain, EU Renewables Lead, Facebook
- Bertrand Charmaison, Director Green Power for Corporates, Engie
|10:30 – 11:00
|11:00 – 12:30
Thematic breakout sessions part 2
2a. Financial innovation and risk mitigation: is a trading exchange the key to unlocking potential?
Support systems for renewable energy in Europe are changing. Merchant risk is set to increase and the sector will need to evolve. There is great potential for the financial sector to develop new and existing products to mitigate the changing risk-profile and support investments. What is currently available to stakeholders in the market and how might these instruments develop? Could an exchange to trade PPAs hold the key to unlocking corporate sourcing potential?
- Current financial instruments to mitigate merchant risk
- How might current instruments develop to address changing risk profile?
- Could an exchange to trade PPAs bring more corporates to the market?
- What are the main barriers to overcome to introduce such an exchange?
- Stéphane Dubos, Executive Director Power & Renewables team, Natixis
- Viviana Ciancibello, Business Developer, EEX
- Sascha Schröder, Vice President Commercial Strategy in Trading & Origination, Statkraft
- Michael Waldner, CEO & co-founder, Pexapark
- Ciaran O’Brien, Head of PPAs, Brookfield Renewable Partners
- Thomas Elgaard Jense, Director, Strategic Business Development, Energi Danma
2b. Demand growth and diversification: How to turn 100 corporates into 100,000?
The number of corporates currently sourcing renewable energy, especially through PPAs is still limited. How do we raise awareness and educate the 50.000 companies who are not yet sourcing renewables? And how do we make it easier for all corporates to access this opportunity in a simple, low risk and economic way?
Smaller corporate buyers with lower energy demand and / or less experience of entering into corporate PPAs may want to join forces with other buyers through multiple buyer structures. These risk-sharing solutions are increasingly attractive options for some corporate buyers. Potential termination rights and different accounting treatments are also leading corporate buyers towards using multiple buyer structures.
In the case of energy intensive industries, electricity price is a particularly sensitive issue for competitiveness in this sector. A fixed price corporate PPA could therefore be inappropriate. Price recalibration points can be met allowing the parties to renegotiate lower prices based on wholesale rates decreases. Floating price structures can also provide solutions that are more responsive to movements in the market.
This session will look into the need of all corporates, small to large, discussing their needs and analysing the various solutions that can help address them.
- Awareness raising and education
- Aggregation of demand: Multi-buyer & multi-seller models
- What are the inherent risks in multi-party contracts
- Energy intensive industry needs
- Bankability and risk mitigation strategies
- Role of third party aggregators
- Can utility programmes help in meeting the needs of smaller players?
Moderator and Input
- Sam Kimmins, Head of RE100, The Climate Group
- Jean-Pierre Riche, Managing Director, Orygeen SAS
- Sam Goss, Investment Director, Octopus Investments
- Angelika Möbius, Senior Manager Strategic Partnerships, First Solar
- Tina Zierul, Senior Policy Director, Chargepoint
- Felice Simonelli, Head of Policy Evaluation, CEPS
2c. Energy intensives: how and why big power consumers should switch to renewables?
Energy intensive industries deserve particular attention when it comes to corporate renewable sourcing, not just due to their large demand but due to their high exposure to electricity costs and, in some cases, ability to offer flexible demand. Chemicals, cement, refining, steel, fertilisers, paper – these are all example of big industrials that could and should be switching to renewable power. Renewables can help reduce their energy costs and volatility, rapidly bring down their carbon emissions and thereby increase their competitiveness. However, at present there is still limited awareness of the advantages of renewable energy and some reluctance amongst these industries to adapt their sourcing strategies.
- Round up of different electro-intensive sectors and their energy needs in terms of shape and volume: chemicals, fertilisers, steel, cement, refining, pulp and paper, ceramics, metals, lime and glass.
- How can we raise awareness about the benefits of sourcing renewable energy?
- How can renewable developers adapt their offer to the needs of energy intensives?
- Case studies of successful corporate sourcing in this sector
- Reminder of other energy obligations on this sector e.g. ETS
- Tor-Ove Horstad, Senior Vice President, Head of Commercial Energy, Norsk Hydro
- Joost Sandberg, Renewable Development Manager, Akzo Nobel*
- Manuel Cornejo, Energy Purchasing Manager, Atlantic Copper*
- Jeroen Tap Energy, Contracts Manager, Dow Benelux*
- Jochen Wagner, Teamlead Procurement Energy & Utilities Europe, BASF*
- Tobias Ostermann, Group Lead Buyer Power & Gas, Heidelberg Cement*
- Álvaro Dorado Baselga, Vice President Energy Europe, Alcoa*
- Rene Stadler, Category Head Energy, Mondi Group*
|12:30 – 14:00
|14:00 – 15:30
Thematic breakout sessions part 3
3a. World view: established and emerging corporate sourcing markets beyond Europe
The corporate sourcing trend started outside of Europe, and therefore we have potentially much to learn from other regions and countries around the world. In this session we will try and draw inspiration from beyond Europe’s borders, including India, China, Australia, Mexico, Middle East & North Africa and of course USA. What mistakes should not be repeated in Europe, and what best practices can be adopted? How do different regulatory regimes change the nature of the corporate sourcing market? And which are the hot new markets that Europe-based players can expand into?
- Different models in markets outside of Europe
- Pitfalls and plus points: avoiding the mistakes made elsewhere
- Where to look for the next opportunities
- Stephanie Weckend, Programme Officer, International Renewable Energy Agency (IRENA)
- Xavier Houot, Senior Vice President Group Environment, Safety, Real Estate, Schneider Electric
- Masaya Ishida, Manager, Renewable Energy Business Group
- Dipjay Sanchania, Head of Carbon, Sustainability & Power Markets, CLP India
- Rebecca Collyer, Director, European Climate Foundation
- Merve Güngör, Liaison Coordinator for Asia & North Africa, EKO Energy
3b. Keep it simple: Increasing PPA volumes with standardisation and simplification?
This session is part of the RE-Source Standardisation & Simplification Task Force.
There is significant complexity to PPA transactions, a variety of business models and diverse approaches to PPA deals in Europe. This, combined with the inconsistent legislative frameworks across Member States, is slowing down the development of corporate renewable energy PPAs in Europe.
The goal of this session and the RE-Source Platform Standardisation & Simplification Task Force is to discuss and drive forward standardisation, simplification and innovation within the corporate PPA sector in Europe. This could be done by creating and disseminating tools to speed up, reduce risk and lower costs in the transaction process to accelerate corporate PPA deals across the region.
- How can we reduce the time, cost and complexity of doing transactions
- What should be in a ”European buyers’ tool kit”?
- Is a pan European template contract and/or terms sheet even feasible?
- Mariana Heinrich, Manager, Climate & Energy, WBCSD
- Daniel Kaufmann, Senior Associate, Norton Rose Fulbright
- Zosia Riesner, Head of Corporate PPAs, Lightsource BP
- Mario Pavlovic, Product Owner, Energy Web Foundation
- Gerard Pieters, Senior Director – Structured Finance Europe, Nord LB
- Andrius Juozapaitis, Chief Commercial Officer, WePower
- Jan Haizmann, Chairman of Legal Committee, EFET *
- Graeme Brownlie, Senior Procurement Manager, Vodafone *
3c. Finance, bankability and accounting: how do the banks view PPAs?
A key player in sealing the deal in corporate sourcing are the lenders financing the project. What are they focusing on when they look at a corporate PPA? How can they be reassured as far as the creditworthiness of the off-taker is concerned – and is aggregation a potential solution? Can PPAs impact the accounting and financial reporting of corporate energy buyers, and how can any adverse impacts be mitigated?
- Financing with debt and equity: potential pitfalls
- How to mitigate risks around the creditworthiness of offtakers? The role of credit support and multiple buyer structures
- How PPA structures can lead to derivative accounting
- How to account for a PPA under either GAAP or IFRS standards, and how can a PPA change which standard the corporate falls under?
- Phil Dominy, Director, Ernst&Young
- Jerome Guillet, Managing Director, Green Giraffe
- Tomas Tuominen, Vice President, Green Investment Group
- Sophie Dingenen, Partner, Bird&Bird
|15:30 – 18:00