Industrials

In energy-intensive operations the power bill behaves like a raw-material cost, and volatility in the supply arrangement passes through to the cost of every unit produced. Around-the-clock process load also complicates the standard offtake menu; it does not match a solar generation shape, and a contract that looks cheap at the annual average conceals the hours when generation is absent and prices are set at the margin, and the cost of the mismatch compounds over the full tenor of the contract. We model the different scenarios; the results form the basis for negotiating the price index, the volume commitment, and the settlement terms.

Where the site allows it, on-site behind-the-meter generation and energy storage can open up more flexible structures and directly mitigate exposure to demand charges. This can be combined with PPAs from front-of-the-meter generation and energy storage to fit supply to the plant's load and tariff. The right mix is best evaluated by an independent advisor with no equipment to sell: we are not owned by any utility, developer, or equipment vendor, and we are compensated only by our clients and take no third-party commissions or vendor payments.

Brixton Infrastructure's principal spent over 15 years structuring energy deals for IPPs, including over 3 GWh of energy, capacity, and REC hedges structured, negotiated, and executed from the seller's side of the table. That experience includes structuring and negotiating offtake with industrials and other large energy users, and executing financeable structures that met the needs of both the developer and the offtaker.