Martin and Johns: The Deal Structures That Are Bringing More Buyers to the Renewables Market

“It is no surprise that the growth in corporate renewables has continued at a record pace, because what were once transactions driven almost purely by “go green” ideals or achieving sustainability targets have now also become driven by the bottom line...”

—Martin and Johns in Renewable Energy World.

Energy attorneys Jennifer Martin and Jason Johns authored an article for Renewable Energy World titled “If You Build It, They Will Come: The Deal Structures That Are Bringing More Buyers to the Renewables Market,” published May 8, 2018. The article discusses several transactional structures available to corporate buyers that are tailorable to meet their increasing demand for renewable energy.

The global renewable energy capacity purchased by corporations under long-term contract in 2017 was a record 5.4 GW, with more than half of that total located in the U.S. — 2.8 GW, a 19 percent increase over the previous year. The cost competitiveness of renewable energy and the resulting appeal as a safeguard against rising retail energy prices means that corporate purchases domestic and global renewable energy purchases are projected to set records again in 2018.

The authors detail several means of obtaining electricity for corporations interested in adding renewable energy to their power mix, including:

• wholesale purchases
• retail purchases, either through direct access or green tariffs
• using various financial instruments, such as a virtual power purchase agreement or a proxy revenue swap.