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On-Demand Training:
Creating Procurement RFPs for Renewable and All-source Power Resources

Recorded: August 14 - 15, 2023

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Resource procurement today is facing an unprecedented wave of challenges which has introduced additional risk factors and process issues that are not accommodated under typical utility (and corporate) resource procurement practices.

This course will cover current issues in the renewables, storage, and project development space and the challenges they are presenting to the buy-side. Participants in this course will be made aware of the current industry issues and where there are gaps in the process that either need to be accepted, accommodated, or, in some cases, ignored for expediency since there may not be an acceptable solution. This course is for both utility and corporate buyers, as well as for project developers who seek to understand how they should engage in competitive procurement opportunities.

Learning Outcomes

  • Describe typical renewable and all-source procurement RFP processes
  • Review options to address the current environment, including changes in procurement design and protocols
  • Identify terms and conditions
  • Discuss project evaluation criteria
  • Review project short-listing elements for negotiation

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This is a recorded session - no instructor interaction is available. Recordings do not qualify for continuing education credits. Recordings will expire 30 days from date of purchase and sharing, downloading or copying of the recording in any way is strictly prohibited and will result in the termination of your license.

PURCHASE THIS RECORDING:

Recording license(s)$ 1195.00 each

Day one

Day two

Agenda

8:45 AM - 9:00 AM

Log In

9:00 - 10:45 AM

Background

  • The history of power procurement design – what has worked in the past, and why it might not work in the future
  • Current challenges in the market
  • Other market updates and context
10:45 - 11:00 AM

Morning Break

11:00 AM - 12:15 PM

Scoping an RFP – What Are You Buying?

  • Procurement target derivation
    • Utility processes
    • Industrials/corporates
  • Eligibility requirements and tradeoffs
    • How high should the eligibility bar be raised?
  • Transmission vs. distribution connected resources
  • Interconnection status – where to draw the line
  • Resource Technologies
    • All-Source or Some-Source?
  • Geographic scope
    • Here, there, anywhere?
    • Implications for utilities and corporates
  • Products and choices
    • Energy
    • Capacity
    • RECs
    • Ancillary Services
    • Do you need them all?
  • Contract Types and Tenor
  • Buy vs. Rent – is ownership a consideration?
12:15 - 1:00 PM

Lunch Break

1:00 - 2:45 PM

Accommodating Developer’s Challenges

Discussion on challenges in the current environment, which include:

  • Pricing matters – can it be held firm?
  • Deal structures – flip or own, any preference?
  • Supply chain – has it eased up?
  • Labor issues – are constraints a schedule concern?
  • The IRA – is it helping, or hurting?
  • Financing – given market challenges, has it been impacted?
  • What would you want to see changed in the way utilities and corporates procure that would help get more projects across the finish line?
2:45 - 3:00 PM

Afternoon Break

3:00 - 4:30 PM

Procurement Design – Structuring the Competition

  • Structuring an RFP – an overview of formats and options
  • Pros and cons of different RFP formats in light of current market conditions
  • Review of where auctions can help (and when they might not)

Agenda

8:45 AM - 9:00 AM

Log In

9:00 - 10:30 AM

Evaluation Process

  • Economic assessment – overall options to estimating the relative economics of resources
  • Theory and approaches
    • Comparing ownership options to third Party PPAs
    • Modelling specific resources:
      • Wind
      • Solar
      • Storage
      • Hybrid resources
      • Thermal resources
      • Demand response (DR) and behind-the-meter (BTM) resources
    • Considerations to ensure that resources are modelled as consistently as possible
  • Non-price/qualitative assessment
    • Typical criteria
    • Overall theory
  • Evaluation phase and short-listing approaches
  • Weighting considerations between economic and non-price criteria
10:30 - 10:45 AM

Morning Break

10:45 AM - 12:15 PM

Procurement Logistics – Putting It Together

  • General timelines
  • RFP package contents
  • Distribution list development and market survey
  • RFP information management
  • Bidders’ conference
  • Q&A
  • Communications and protocols
  • Evaluation process plan and criteria
  • Final selection procedures
  • Contract negotiations and execution

Instructors

Dean Koujak is Principal of CRA International, providing energy market and procurement advisory services to utilities, developers, investors, and other stakeholders in the electric power industry.  Prior to joining CRA, he was a director in the Energy Practice of Navigant, which was later acquired and rebranded as Guidehouse, Inc.  While at the firm, he served as a consultant to utilities and other stakeholders in the industry advising on procurement, large-scale renewable development, renewable portfolio standards compliance, utility business strategy, decarbonization pathways, transmission infrastructure planning, grid modernization, non-wires solutions, power markets matters (NYISO/PJM/ISO-NE/MISO), energy efficiency program implementation, utility contract negotiations, electric resource planning, regulatory compliance strategy, M&A, and industry litigation.  Mr. Koujak is highly qualified in independent procurement oversight and implementation and has served in a variety of capacities in this regard including as an independent evaluator, administrator, independent monitor, and independent observer. He earned a bachelor’s degree in engineering management for New York Institute of Technology, an MBA from Stony Brook University and his law degree from Hofstra University.

Dean Koujak

Principal

CRA International

Robert Lee is a Vice President in CRA’s competitive auctions and bidding practice. He specializes in designing and executing structured sales and procurement channels for clients in a broad array of industries and markets. In these engagements, Mr. Lee has worked closely with his clients’ senior management to define market rules tailored to meet their business objectives, while recognizing the unique constraints of the individual industries. He has worked with utilities across the U.S. to design and execute procurement processes for energy and capacity and standard service offer supply in multiple PJM states.  He has led modeling teams for clients at Allegheny Power Systems, Dayton Power and Light Company, and Cinergy in support of their transition from vertically integrated utilities operating under cost of service regulation to utilities operating in markets with retail choice.  Prior to joining CRA, Mr. Lee served in senior staff positions at the PA Consulting Group and at Putnam, Hayes and Bartlett, Inc.

Robert Lee

Vice President

CRA

Dr. Margarita Patria is a Principal at CRA International and Adjunct Professor at Northeastern University. Her work has focused on the intersection of energy economics, market design, and data analytics. Dr. Patria provides market design and analysis solutions to utilities, regulators, and other electricity market stakeholders.  She is currently leading successful energy auctions and renewable procurements in multiple states and is responsible for electricity market analysis, bid valuation, and forecast tasks. She advised bidders in multiple high-stakes auctions.  Her research focuses on empirical and theoretical analysis of energy markets and applied game theory.  Dr. Patria received her Ph.D. in Economics from Boston College. She is currently teaching a course in the Economics of Energy Markets at Northeastern University. She is the author of several academic papers.

Dr. Margarita Patria

Principal

CRA International