The challenge

Facilitate the end-to-end PPA procurement process

The client is a large commercial and industrial (C&I) business in Australia, servicing more than 12 million residential and business customers with services across Australia each day. 

The client was seeking the development of a renewable energy roadmap that would enable it to achieve its emissions reductions targets for its Scope 2 emissions. To support this, Rennie developed a roadmap that considered the client’s objectives against the contracting structures available in the market to determine its ideal commercial pathway. This roadmap was presented to executives and received endorsement for execution. The success on the roadmap development led to our team being re-engaged to procure renewable energy in line with the roadmap. 

Our solution

Designing a process that aligned to the client’s objectives 

Rennie undertook confidential market sounding with a pool of agreed bidders to test market appetite, solutions and value drivers. This insight was used to design a process which met our client’s ultimate objectives while driving value for money by considering market engagement feedback. 

The team prepared the target list and the full suite of RFP documentation including the tender documents, tender assessment criteria, term sheets and returnable schedules in collaboration with legal advisors. When the documentation was released, the team supported with the counterparty management, answering questions and seeking clarification as required on the responses. The team then assessed the responses against the tender assessment criteria and made recommendations to refine the contract structure and to select the preferred bidders. The contract negotiation is still in progress but will result in the client achieving its sustainability objectives while driving value for money in its energy costs. 

Our impact

Market led insights to inform negotiations

As a result of our work developing a roadmap, the client was able to understand the requirements to achieve its sustainability objectives and seek approval to commence that work. Rennie is now assisting in the implementation of PPA procurement as the lead advisor, primarily focused on selection of a long-term energy partner. 

Key insights

• Insight into renewable energy deal structures in a manner which could be shared and understood across multiple stakeholder groups
• Tailored assessment of renewable energy options to align to client’s objectives 
• Bespoke financial model to detail the financial impact of the renewable energy roadmap
• Selection of a preferred long-term energy supply partner
• Expected achievement of the client’s renewable energy and sustainability objectives, in line with parent company SBTi targets