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EnerConnex now offering Additionality RECs to clients as an alternative to complex VPPAs

EnerConnex now offering Additionality RECs to clients as an alternative to complex VPPAs

by | Feb 7, 2024 | Uncategorized

FOR IMMEDIATE RELEASE

                                                                                                                      FEBRUARY 07, 2024

Partnership with Zettawatts provides access to Additionality REC Market for EnerConnex Clients

Folsom, NJ— Today EnerConnex announced it is partnering with Zettawatts to deliver an innovative solution to clients that addresses increasing regulatory and investor scrutiny.

“Our clients are looking for a high-impact solution that is a simpler, low-risk alternative to virtual power purchase agreements.” said Tony Barnhart, Managing Director, EnerConnex. “We are now able to offer clients Additionality RECs – fixed-price forward contracts for renewable energy certificates from projects still under construction – to bring new renewable energy to the grid.”

In 2024, companies doing business in California, the EU and certain SEC regulated public corporations will be required to disclose both energy emissions as well as current mitigation efforts to meet voluntary decarbonization goals. Corporations like Microsoft, Google and Amazon determined to meet these objectives in 2024 are actively signing long term virtual power purchase agreements (VPPA) with projects that are under development. Unfortunately Virtual PPAs are highly complex financial instruments that expose corporations to the volatile wholesale electricity market and require sophisticated hedging to mitigate the risks.

Zettawatts’ Additionality REC Market eliminates the complexity and risk associated with VPPAs by allowing companies to enter into 5 or 10 year forward contracts to purchase only the RECs at a fixed price from projects under development.

Scott Case, Founder of Zettawatts added, “Corporations need expert guidance to navigate the  pressure from investors and regulators to mitigate their Scope 2 emissions from electricity. The EnerConnex team has deep experience delivering for their clients and we’re honored to partner with them to bring another innovative solution to their tool kit.”

The Additionality REC Market provides a suite of software solutions including:

AREC Planning & Budgeting: provides estimates for impact and additionality coverage.

REC Price Forecasts: guidance on REC prices over next 10 years for 20+ REC types.

AREC Purchase Offer & Booking: prepare a purchase offer including your own price per REC.

Marketing & Reporting: receive project marketing rights as well as additionality attestations.

REC Registry Tracking: accounts with all registries allowing for transfer, retirement and auditing.

About EnerConnex

EnerConnex is a leading energy advisory firm focused on energy procurement, renewables and sustainability. With access to one of the largest supplier networks, a proprietary pricing platform, and extensive industry experience, we tailor energy strategies based on our client’s specific needs and sustainability goals. EnerConnex is a wholly owned subsidiary of SJI– a $2.6B energy infrastructure company. More at enerconnex.com.

About Zettawatts

Zettawatts’ mission is to accelerate the deployment of new renewable energy projects by providing corporations a high-impact, low-risk way to back new U.S. projects to meet their sustainability goals. The company’s flagship product is the Additionality REC Market where sustainability leaders sign forward contracts to purchase 5 or 10 year strips of fixed-price Additionality RECs from projects currently under development. The AREC Market enables users to plan, budget, review REC price forecasts for 20+ voluntary & compliance RECs and make AREC offers and bookings. More at zettawatts.com.

For more information:

Erin McAfee – emcafee@enerconnex.com, Head of Marketing, EnerConnex

Tony Hudgins – tony@zettawatts.com, Corporate Sustainability Lead, Zettawatts

Sustainability
EnerConnex now offering Additionality RECs to clients as an alternative to complex VPPAs

Reduce Your Carbon Footprint Through Carbon Offsets

by | Jan 2, 2024 | Uncategorized

Carbon offsets continue to gain in popularity as a way to mitigate the environmental impact of human and business activities. Carbon offsets are a mechanism that allow businesses to compensate for their greenhouse gas emissions by investing in projects that reduce or remove an equivalent amount of carbon dioxide (CO2) or other greenhouse gas (GHG) emissions from the atmosphere. By purchasing carbon offsets and participating in carbon offset projects, businesses can take responsibility for their carbon footprint and contribute to the global efforts of combating climate change. Interested but aren’t quite sure where to get started? EnerConnex can assist with your  carbon offset procurements to help decarbonize your energy supply and reach sustainability goals.

We are currently able to assist with carbon offsets from different project-type pools.  Project type pool examples are National, Global and Forestry. National carbon offsets include carbon reduction values from carbon capture, renewable energy generation and energy efficiency. Global would be similar only beyond National projects, and Forestry carbon offsets contain carbon reduction vales from growing, improving, and preserving forestry projects. Through these project types, carbon offsets are a great option for businesses to help support decarbonization and reach overall sustainability goals.

EnerConnex has helped many businesses successfully purchase carbon offsets. A large printing company came to EnerConnex recently looking to participate in carbon offset projects. After looking into their energy usage and carbon footprint that they were outputting, EnerConnex was able to offset all of their natural gas consumption by purchasing about 300 metric tons of carbon offsets from a Climate-Ecomix project. Climate-Ecomix is a carbon offset product.

How Carbon Offsets Work:

Benefits of Carbon Offset Programs

•A lower-cost option for businesses to offset emissions rather than eliminating your carbon related activities.

• Allows businesses the opportunity to help offset emissions outside of their own company operations, such as company travel, supply chains, deliveries.

• Carbon offsets do not require any facility/equipment modifications.

• You help fund projects that reduce emissions, therefore contributing to a greener tomorrow.

Carbon offsets offer businesses an effective way to take responsibility for their carbon emissions, meet regulatory requirements, enhance their corporate image, manage risks, and contribute to global efforts to combat climate change. Contact EnerConnex today to learn more about offsetting your carbon footprint.

EnerConnex now offering Additionality RECs to clients as an alternative to complex VPPAs

A Brief Recap of the 2023 Electricity and Natural Gas Commodity Markets

by | Dec 7, 2023 | Uncategorized

As we bid farewell to 2023, EnerConnex reflects on energy price volatility and 2024 industry megatrends. Chart 1 below illustrates the volatility in natural gas pricing at the Henry Hub, a key trading point for this commodity.  Note the 100+% volatility from December 2022 to December 2023.

Given natural gas is a key input fuel for electricity generation, electricity prices also experienced large fluctuations in price throughout the year.

Energy markets also witnessed a continued increase in renewable energy adoption with renewable energy accounting for 20% of all U.S. electricity generation. Chart 2 below, breaks down the approximate percent of renewable energy by U.S. electricity production by type.   

Simultaneously, natural gas commodity markets are experiencing what could be transformative changes with the use of green hydrogen used for blending with natural gas as a pathway toward decarbonization and growth in renewable natural gas (RNG). According to Wood Mackenzie, the North American RNG market could expand tenfold by 2050 to reach 4bcfd.  RNG grew by 20% in 2022 and the number of RNG projects have doubled in the last five years with states such as Texas, California and Pennsylvania leading the way. 

Looking ahead to 2024, EnerConnex foresees a continuing path toward decarbonization with two megatrends that will continue to impact the energy landscape. First, the continued advancement of energy storage technologies that will play a pivotal role in enhancing grid stability and managing the intermittent nature of renewable energy sources. Second, the rise of decentralized energy systems and microgrids that will empower consumers to take control of their energy consumption, contributing to a more distributed and flexible energy grid.

In summary, 2023 was marked with volatile electricity and natural gas commodity markets due to weather, natural gas storage, and the continued shift to a more renewable energy resource mix.  Volatility will likely continue as the industry shifts towards more sustainable energy options while wrestling with grid reliability and resilience.

EnerConnex now offering Additionality RECs to clients as an alternative to complex VPPAs

Unplugging the Profits: Why Your Business Needs an Energy Buying Strategy

by | Nov 13, 2023 | Uncategorized

Energy costs consistently rank among the top operating expenses for businesses across most industries. Whether you’re running a small startup or a multinational corporation, the impact of energy prices on your bottom line is undeniable. It can be difficult to understand energy pricing for your business because rates are usually determined by usage, load factors, demand, weather, and overall market conditions.  That’s where having a robust energy buying strategy becomes more than a choice—it’s a financial necessity.

In addition, the volatility of energy markets means that a wait and see approach towards your energy procurement can result in potential unforeseen financial shocks. Price spikes, supply disruptions, and market fluctuations can catch unprepared businesses off guard, leading to diminished profitability. To avoid these pitfalls, a well-thought-out energy buying strategy is crucial. Let’s compare the three main types of energy purchasing strategies and dive into each’s offerings.

  • Fixed Price Solutions: You pay one fixed price per unit of energy that you use over a contract term. Meaning, you make one purchase decision for a set amount of months. This option gives you energy budget certainty, strong cost predictability, helps you mitigate risk, and ensures there will be no rate spikes. Consequently, you could potentially miss out on savings if markets were to fall and you’re locked in at your fixed rate for the contract term.
  • Index Price Solutions: Your rate fluctuates based on real-time market prices and your costs follow by moving up and down daily with market rates. This allows you to capture savings when markets go down and prices adjust automatically based on market swings. On the flip side, this could cause your budget to be unpredictable due to month to month price volatility  and potential seasonal price spikes.
  • Layered Solutions: This solution combines both fixed and index pricing strategies. A percentage or portion of usage is fixed, and the remainder follows variable market pricing. The fixed portion provides budget certainty and helps avoid price spikes in the market. This blend balances cost stability with market price awareness to enhance your savings.
energy buying strategy

Working with an Energy Professional

Energy industry experience, market knowledge, an efficient platform for price discovery, supplier liquidity and market strength, all contribute to making an informed decision about your energy buying strategy. Before diving into the market, businesses must understand their energy consumption patterns. Analyzing when and how energy is used and helping to identify potential areas for efficiency improvements will be beneficial to your energy supply procurement decision. The team at EnerConnex enables you to create a customized energy buying strategy based on your consumption, appetite for risk, and other unique needs and goals.

A well-executed energy buying strategy can lead to significant cost savings, improved budget predictability, and a competitive edge in a volatile market. In a world where energy is both a resource and a commodity, businesses that master the art of strategic energy procurement are better equipped to weather economic storms and emerge as industry leaders. So, as you navigate the complex landscape of your business’s financials, don’t overlook the powerhouse that is your energy bill. Unplug the unnecessary expenses and watch your profits soar.

Funding Your Energy Future: Solutions for cash flow positivity and CapEx avoidance.

by | Nov 1, 2023 | Uncategorized

EnerConnex is a leading energy advisory firm focused on energy procurement, renewables, and sustainability. With access to one of the largest supplier networks, a proprietary pricing platform, and extensive industry experience, we tailor energy strategies based on our client’s specific needs and sustainability goals.

EnerConnex is excited to announce our partnership with ECOSAVE to drive sustainable energy solutions for mid-to-large commercial and industrial end users. Ecosave has more than 20 years of engineering expertise reducing energy costs and carbon emissions through tailored efficiency, technology, and renewable solutions.

Energy infrastructure projects are often assumed to be cost prohibitive. Our flagship funding model- the Ecosave Service Agreement- provides clients with the capital to fully fund building upgrades and reduce operating expenses from day one. As an energy-as-a-service provider, Ecosave provides an off-balance sheet funding model so clients can innovate building infrastructure without capital or debt.

How You Benefit:

Wide-ranging solutions are customized, including:

TODAY:TOMORROW:
·         Building upgrades with $0 outlay, debt or delay-funding is immediately available.·         As energy prices increase, your savings grow.
·         Guaranteed operational savings spelled out and contractually locked in.·         Ecosave optimizes equipment for the life of the contract.
·         Cash flow positive from day one- your savings exceed our fees.·         Ecosave and EnerConnex continues to serve as a single point of contact for all your energy needs.
·         Off balance sheet for capital expenditure avoidance.·         Measurable reduction of carbon emissions and operational expenditure. 
  • Energy efficiency optimization of existing infrastructure, from lighting to complex mechanical retrofits, upgrades, energy recovery, and replacements and optimization of process and production.
  • Renewable and onsite generation, including combined heat and power, geothermal, solar, and battery storage.
  • AI-driven data overlay to identify operational inefficiencies and provide predictive optimization and ongoing retro-commissioning.
  • Robust plant automation systems to intelligently enhance performance and efficiency, without compromising comfort, process, production, or security.

Partner with EnerConnex and ECOSAVE and start saving money and energy, guaranteed, with $0 upfront investment. Contact us today to get started!