Understanding the complexities of the energy market
Our Renewables team are ideally placed to manage your Power and/or Gas Purchasing Agreements (PPA’s and GPA’s) whether they be Fixed, Flexible or Corporate.
We optimise all aspects of the agreement and carry out forensic analysis to ensure all the financial benefits are in place. Our services include ongoing management and reporting.
Our exceptional customer retention and new business wins are based on an understanding that BIU is a business partner working with our customers to deliver long-term solutions. Many of our large customers have been with BIU since the formation of the business and new business wins are often on the recommendation of existing customers.
Renewables Revenue Recovery
With over 50% of contracts having errors, our ‘Asset Certification Health Check’ makes perfect business sense. Delivered under our standard ‘share of revenue recovered’ contract the risk sits with BIU to find where things might have gone wrong.
ROC, REGO, RGGO, RHi, GGC & EB Optimisation
Making sure that all the elements are paid at the maximum rates or percentages available in the market. Commercial optimisation of these certificates will maximise any revenues.
Our Trading Team’s knowledge of the markets and bespoke trading strategies provide for better management of your assets.
Being a part of the BIU business partnership gives you the same market opportunities and access to our visible platforms as a large power station.
This aspect of trading is business as usual for the BIU Optimisation Team.
BIU advanced portal platform gives you access to your half-hourly generation data and financial position at any time.
Expected generation profiles, scheduling of any planned or unplanned outage will be captured and communicated through your dedicated CRM.
Forensic Auditing & Revenue Recovery
Where pre-existing PPA/GPA contracts are being “renewed” (rather than negotiated afresh) – care should be taken to ensure that the mechanisms are still fit for purpose and provide the certainty and information flows required.
This can also be a good time to audit and carry out a general review of the contract to ensure that it remains suitable and to audit the arrangements for generation payments and correct payment of Embedded Benefits.
Over many years BIU have successfully audited supply contracts and around two-thirds are regularly found to contain errors. This is the case in export contracts, therefore we carry out a comprehensive audit on our clients historic transaction data leading to revenue recovery.
Choosing one or a number of BIU portfolio options
For budget certainty, the BIU Fixed Price PPA locks in a power price for your generation at the time of contract signing.
Our fixed price PPA allows you to calculate exactly what your returns will be over the course of our agreement.
The typical length of a BIU fixed price agreement is 1-5 years.
Flexible agreements are typically 3 to 5 years.
They are a fully traded contract where forward volumes are sold dependent upon market conditions.
The trading strategy is set after a detailed discussion of the available tactical options and market indicators and a comprehensive review of the client’s risk profile.
Originally known as a Direct PPA but is now more commonly known as a Corporate PPA. Typical term 10 to 15 years.
A “Price Guarantee Agreement” is a relatively simple form of “commercial” Contract for Difference (CfD) that can be rolled out over a number of projects. In a world without subsidy Corporate PPA’s are often seen as a route to project bankability, however, they have been proven hard to come by.
BIU Corporate Market Intelligence and Blue-Chip Client Base
Corporates are looking at ways of getting greater transparency and long-term certainty over all elements of their energy supply costs.
Faced with interest from customers and in an ever-competitive supply market, licensed suppliers have responded to customer pressure with innovation – participating in CfD/bi-Lateral arrangements and actively offering supply contracts which will allow for the sleeving of power procured through corporate PPA’s.
Increased pressures from investors and consumers for corporates to buy green, promote renewable energy and “green” their supply chain is #encouraging this route to market.
Lack of government support has encouraged generators to seek out creditworthy corporates for long-term PPA’s to improve project feasibility.
One driver in existing projects is shareholder concern over lower than modelled wholesale prices and the need to deliver more attractive/certain revenue stream for funders/investors in new projects.