Renewable Energy RFP Procurement Solicitation Process

Best Price Isn't Always the Best Deal

September 20-21, 2021 | Online ::

Utilities and other buyers of bulk renewable energy face an increasingly complex, competitive terrain when procuring these resources to meet clean energy objectives and RPS requirements.  The new landscape has sprouted a market with hundreds of new procurement entrants – some buyers like utilities with lots of experience procuring power and other buyers with less experience.  In addition, the power resources being procured have built-in layers and complexities that more conventional power resources do not involve.  Thus, the process of procuring renewable power resources requires meticulous attention and awareness of nuances.

This course will provide utility, corporate and project development professionals engaged in the process of competitive renewable procurement — on both the buy and sell side — an overview of best practices and tools to strategically prepare, design, and respond to RFPs (including RFQs, RFIs, RFOs and all solicitations in general) and obtain optimal results. Subject matter experts will share their experiences and strategies to analyze, and decide on the best renewable energy resource procurement outcomes through competitive RFPs.  Utilities of all kinds (IOUs, munis, coops); load-serving entities such as community choice aggregators (CCAs), universities, government and public-serving agencies and hospitals; as well as corporate and commercial off-takers, will find great value in the best practices delivered in this course.  Those active in project development will find the course useful also, as they prepare and position their offering most competitively.

Learning Outcomes

• Describe a typical RFP process
• Construct a template for preparing and designing renewable energy and REC RFP procurements
• Define products for procurement
• Assess administrative elements
• Determine protocols
• Identify terms and conditions
• Discuss project evaluation criteria
• Review project short-listing elements for negotiation
• Examine after-the-project-award actions

Monday, September 20, 2021 : Central Time

9:00 – 9:15 a.m. :: Overview and Introductions

Overview of Typical RFP Process

1. 1. Competitive procurement fundamentals
      1. The parties and their transactional roles
         1. Buyers/ off-takers
         2. Sellers
      2. Types of RFPs
         1. PPAs
         2. Build-transfer
         3. Self-build
   2. Why RFPs?
      1. Advantages to off-takers
      2. Advantages to sellers
      3. Where is competitive procurement permissible and what are the regulatory limitations that might preclude this resource procurement approach?
      4. Is competitive bidding always feasible or desirable?
      5. Basic types of solicitation mechanisms and procurement RFPs
      6. What are top-level competitive procurement issues?
      7. Illustrative timeline
   3. Establishing confirmation fairness

Preparing and Designing Renewable Energy and REC RFP Procurements

1. 1. Determining the self-supply vs procurement mix
   2. Distinctions in RFP between buying physical power and virtual power
   3. Bundled vs Unbundled
   4. All-source (mixed resource) solicitation
   5. Creating a procurement plan
   6. Identifying renewable energy procurement requirements
   7. Assembling internal resource procurement team
   8. Constructing workable RFP process timeline
   9. Identifying bidders and conducting outreach
   10. Formulating plan for evaluating bid proposals
   11. Managing vendor selection and awards
   12. Encouraging supplier diversity

Define Products

1. 1. Resource need overview
      1. Energy
      2. Capacity
      3. Storage
      4. All-source
   2. Contract tenor
   3. Resource tenor
   4. Alignment with load
   5. Risk hedging
   6. Local benefits
   7. Environmental benefits
   8. Contract structures

Administrative Elements

1. 1. Web presence
   2. Marketing
   3. Bidder instructions
   4. Schedule
   5. Standard forms to foster automation and minimize errors
   6. Bidder webinar
   7. Answering bidder questions
   8. Issuing addendums
   9. Receiving bids
   10. QA/QC
   11. Eliminate non-conforming bids

12:30 – 1:15 p.m. :: Lunch Break

Protocols

1. Schedule
2. Products being procured
3. Production estimates, availability guarantees, output guarantees, performance security
4. Needed online date
5. Evaluation criteria
6. Quantitative valuation methodology overview
7. Communication policy

Related Items

1. 1. PPA offer form / type of submission
   2. Data templates for project characteristics
   3. Bid security
   4. Binding vs non-binding bid
   5. Treatment of non-conforming bid
   6. NDA
   7. Credit conditions
   8. Terms and conditions

Externalities that may not be Reflected in Bidding Process Impact but could Impact Supplier Selection

1. Scalability
2. Transmission access
3. Siting
4. Curtailment
5. Risks associated w/ project development and resource delivery
6. Availability of storage and recognition of value contribution

5:00 p.m. :: Program Adjourns for Day

Tuesday, September 21, 2021 : Central Time

Project Evaluation

1. Scoring Sheet (inclusion on web page?)
2. 3 economic value streams
3. Energy
4. Capacity
5. Ancillary services
6. Modeling
   1. Components
   2. Geographic variation
   3. Risk profile similarity
   4. Capturing meaningful uncertainty
   5. What not to do (average)
   6. Simulations
   7. NARUC resolution on sub-hourly modeling
   8. Evaluating the impact of storage
   9. Loss of load probability calculations
7. Case studies
8. Cost comparisons
9. Risk management
10. Hedging with a PPA
11. Historical bias
12. Basis risk
13. Danger of averages
14. Performance risk
15. Mark-to-market tracking

Project Short-listing for Negotiation

1. Details
2. Follow-up
3. Notifications

After the Project Award

1. 1. Administration
   2. Monitoring
   3. Scheduling
   4. Settlements
   5. Risk optimization

12:15 p.m. :: Program Adjournment

Storage RFP Procurement Process

Be Careful What You Ask For

Tuesday, September 21, 2021 : Central Time

Overview

The emergence of energy storage as a feasible and economically-justifiable resource element has further complicated the renewable energy resource selection process – in a good way.  Increasingly, energy storage has intrinsic value in multiple ways and for many uses on the grid.  In combination with renewable energy, it can have an especially powerful multiplier value.  But the storage solicitation and procurement process has its own considerations and requirements.  This workshop will identify what those differences are and how they should be addressed.

Agenda

1:15 – 5:00 p.m. :: Similarities and Differences Between Renewable Energy and  Storage Procurement Solicitations

• Solicitation Distinctions Between Stand-alone vs Solar+Storage Solicitations
• Special Issues that Merit Evaluation
• Adjustments Required to the Solicitation Process and Timetable
• Storage Solicitation Decision Hierarchy

5:00 pm. :: Program Adjournment

Roger Nagel is a Principal at Aion Energy and brings three decades of international energy industry design and consulting experience applicable to development, decision making and structuring of client programs. He has served as a design engineer, consultant and consulting lead, owner’s engineer, and power engineering practice lead. Mr. Nagel’s areas of expertise involve feasibility studies, system optimization, procurements, financial analysis, bid evaluations, and contract negotiations. He has a BS in Mechanical Engineering from Purdue University.

Scott Leigh is a Principal at Aion Energy and has been engaged in consulting and engineering activities in the energy industry for more than 12 years. He is focused on providing program management to entities as the industry transforms and evolves, bringing power plant experience, design experience, and experience associated with leading a strategic consulting practice. Mr. Leigh is heavily engaged in commercial, financial, and regulatory activities including long-term planning, studies, negotiations, and filings. He has a BS in Mechanical Engineering from the University of Michigan.

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

• IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
• You will receive a meeting invitation will include a link to join the meeting.
• Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
  • You will need to join the appropriate meeting at the appropriate time.
• If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
• The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

REGISTER NOW FOR THIS EVENT:

Renewable Energy RFP Procurement Solicitation Process

September 20-21, 2021 | Online

RELATED WORKSHOPS:

Storage RFO/RFP Procurement Process

September 23

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before May 21, 2021 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.0 CEUs for this course and 0.4 CEUs for the workshop.

Who Should Attend

In utilities and other power systems procuring renewable energy resources…

• Procurement staff
• Contract administration staff
• Renewable energy planning staff
• Integrated resource planning staff
• (Resource) origination staff
• Project management staff
• Compliance staff

In the power project development sector providing renewable energy resources…

• Business development
• Project management

Requirements for Successful Completion of Program

Participants must log in each day and be in attendance for the entirety of the event to be eligible for continuing education credit.

Instructional Methods

Case studies, PowerPoint presentations, and panel discussions will be used in this program.