Corporate Renewables Procurement | Expert Q&A

You are invited to join international experts and leading professionals in an interactive Ask Me Anything Q&A on Corporate Procurement of Renewable Energy.

Who Will Answer My Questions?

Leading experts are standing by to answer your questions.

Gina, Bethany and Chad have introduced themselves below. Additional experts and practitioners will contribute as well.

Why Corporate Renewables Procurement?

Corporate procurement of renewables achieves important corporate objectives like cost-control and savings, risk mitigation, and ESG—and it is a vital driver of the clean energy transition. But corporate renewables procurement at scale can require combined effort between corporates, financiers, developers, and policymakers. And redirecting corporates’ investments toward renewable energy can be challenging, particularly in economies and sectors with relatively few case models to follow.

Are you working on or thinking about corporate renewables procurement? Would you like to connect with peers and experts pioneering this important work?

Please join this “Ask Me Anything” session on corporate renewables procurement.

More Details About this "Ask Me Anything"

How Long Does this AMA Last?

Our experts will be reading and responding to your questions between 10th January and 28th January 2022. Participants are encouraged to continue the discussion after that period.

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Hello, everybody. I’m looking forward to speaking with you. A brief video introducing myself is below, and my professional biography follows that.

Chad Laurent, Esq. is a Principal at Cadmus . He specializes in renewable energy law and policy, sustainable business strategies, and renewable energy project development. Mr. Laurent has developed regulations, regulatory frameworks, power purchase agreement toolkits and procurement policies for countries across the globe. He has provided legal analysis of Indonesia’s Geothermal feed-in tariff policy, helped develop Azerbaijan’s draft renewable energy law, created a model power purchase agreement for Trinidad and Tobago, contributed to the drafting of a renewable energy law drafter’s guide for the United Nations Environment Programme, and to a study on the legal ability of U.S. states to set feed-in tariff rates for the National Renewable Energy Laboratory. He has supported the development of minigrids and accompanying regulations and concession agreements for Papua New Guinea, Vanuatu, Lesotho, as well as toolkits for minigrid tariff design for African countries. He has supported the development of Vietnam’s first solar net metering policy, drafted renewable PPAs in Indonesia, and developed and delivered a 6-day regulatory and PPA training on behalf of NARUC and ADB for Pacific Island countries. Mr. Laurent has consulted to the World Bank, UNDP, UNEP, OAS, FMO-NL-Agency, and various regulators in the U.S. He holds a Juris Doctor from Suffolk University Law School where he was a Rappaport Honors Fellow in Law and Public Policy (in collaboration with the Rappaport Institute for Greater Boston at Harvard University), and a B.S. from the University of Michigan in Environmental Policy & Behavior and Natural Resource Ecology & Management. He is a professionally trained mediator, and facilitator, and is admitted to the Massachusetts Bar.

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Dear all,

I am pleased to be here, and happy to answer any questions that I can. More on my background is below.

Best,

Gina

Gina Lisidiani has worked in the renewable energy and low emission development field in Indonesia for more than a decade. Based in Jakarta, Gina manages Allotrope’s business origination activities through engagement with qualified local partners, networking with relevant government offices, and navigating policy and regulatory requirements related to renewable energy project development, specifically focused on solar and low-head hydro deployment. Ms. Lisdiani holds her Bachelor’s Degree in Industrial Engineering and her Master’s Degree in Business and Technology from Bandung Institute of Technology.

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Hello Clean Power Hub Community,

Happy to be here with all of you. I am excited to discuss corporate procurement of renewables with you, and help however I can.

Thank you,

Bethany

Bethany Speer is a Senior Researcher at NREL , where she manages international projects with a focus on efforts related to clean energy finance, investment and public-private partnerships. Since 2016, she has served as a co-lead of the Clean Energy Investment Accelerator (CEIA), a global program that addresses barriers to corporate clean energy investments in the commercial and industrial sectors in emerging economies. She is the partnership and investment services manager for the new Net Zero World program under the Biden administration’s Build Back Better World initiative.

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considering all the risks involved in developing renewable energy project, What is the appropriate discount rate to use for a project?

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Indonesia is the owner of the largest geothermal reserves, in your opinion what is the right combination to develop solar energy together with geothermal energy?

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What is the most issue in the implementation FIT (Feed-in Tariff) policy in Indonesia? And as far now what is the barriers in increasing development renewable energy in Indonesia?

Thank you in advance

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Dear Bu Gina

Good day

To increase development of renewable energy, is there any open or public program to attract local business partners and end user in each major islands in Indonesia? Just wondering maybe it will be interested if the well known electrical equipment manufacturer or service provider can be invited for such open/public program resulting interesting collaboration right.

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Greetings, and thank you for your question! Right now the barriers to more renewable energy development in Indonesia are related to policy and regulatory design. Current regulations and legal frameworks will need to be examined and clarified in order to ensure that renewables can be deployed at a large scale and that they receive a reasonable and just compensation for the electricity they produce.

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Hi Helvita, and thank you for your question! Could you clarify what you mean by discount rate? If you’re referring to what the expected return on investment should be for a developer, then that can vary widely. Across global markets we see expected returns range from as low as 5-6% for some homeowners looking to install solar depending on the local market and incentives, to 11-20%+ for commercial investors and large developers. The return required depends on how developed the renewables market is, location and national incentives, and how clear the legislation, regulations, and local development costs are. It’s critical that local approval processes are transparent.

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Dear Pak,

Thank you for your question. Under our initiative, currently we still don’t have that particular program. But we always oversee that potential opportunity. Perhaps in the future.

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From the perspective of corporate buyers, supply of electricity from both technologies are accepted. However, in term of the development’s timeline, to develop solar PV is much faster than developing a geothermal power plant.
Therefore, at the moment solar PV is more favorable because it could help company meet their RE targets relatively quickly.

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Any certain formula to calculate toll fee/pricing for electrical transmission in power wheeling scheme?
as we know, almost all electrical transmission lines in Indonesia are owned by PLN. if we want to apply power wheeling scheme in Indonesia, we need to know how we can calculate affordable price to rent or paying transmission cost.

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The discount rate refers to the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows and generally calculated using the wacc formula

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Dear Clean Power Hub Community,

I have extensive experience in the clean energy sector and welcome questions on the Indian context in this Ask Me Anything event. Please see my bio below.

I look forward to speaking with you.

Best
Dinesh

I am currently with Ernst&Young (EY), serving as Executive Director / Team Leader for The World Bank funded, State Bank of India operated 5 year $12.93 million Grid Connected Solar Rooftop PV Technical Assistance Program (SUPRABHA) for 17 States in India since August 2017. Under SUPRABHA, I am leading leading legacy initiatives related to creation of enabling ecosystem for accelerated deployment of rooftop solar in India, Solarization of MSMEs, CPSUs & SPSUs, Educational and Health Institutions - pan India, One Sun One World One Grid, National Renewable Energy Data Centre, Digitilization of DISCOMs, National Online Rooftop Solar Data Monitoring Centre etc.,

Prior to this, I was with Nexant, serving as its Chief of Party for the USAID-funded, 6-year, $22 million Partnership to Advance Clean Energy – Deployment project in India. Have more than 27 years of experience in the fields of climate change, clean energy, and sustainable development and worked with IREDA and TERI in India and Asia Carbon and IDEAcarbon in Singapore and United Kingdom besides USAID’s LEAD Program in Bangkok.

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Hello Clean Power Hub Community,

I am highly engaged with a national program in India, REDE, which is focused on renewable energy procurement. I hope to help address questions on the Indian context. Please see my bio below.

I look forward to speaking with you.

Regards
Apoorva

Apoorva Santhosh has been active in the clean energy field for the last seven years. She is currently working on projects including Renewable Energy Demand Enhancement (REDE) which provides a national platform to discuss the current challenges in RE procurement. She is passionate about sustainable and green technologies and has worked on projects facilitating uptake of renewable energy by C&I consumers through stakeholder engagement, technology, and policy interventions. She has a strong policy background, working with Government and Renewable Energy Stakeholders to create an enabling ecosystem at both Central and State levels.

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Hi Wisnu, great question! Unfortunately there is no one-size-fits all approach to wheeling fee calculations and of course this will be driven by PLN although ESDM could potentially play a role as a regulator providing oversight as to how the fees are calculated and implemented. This NREL report provides some examples as to how wheeling fees were calculated in the US, Mexico and India. A couple of key messages from that report are that 1) discounted wheeling fees for RE can encourage deployment (although cost implications for the transmission system need to be considered) and 2) simplified fee structures can promote uptake by providing a transparent signal to RE generators and buyers about future wheeling costs. A further example calculation can be found in this USAID summary presentation on wheeling fees for East Africa.

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To achieve its clean energy goals, Indonesia should pursue developing both solar and geothermal resources. As you know, they each offer complementary benefits as well as present unique challenges. Geothermal can offer baseload power and also be a heat resource to industrial customers looking to reduce emissions from their thermal energy loads. However, geothermal development is higher risk and location specific. Solar can be more widely deployed, geographically speaking, and is more modular and quicker/less risky to develop. However, the power is variable and intermittent. It’s also important that land constraints be considered, with the focus being on rooftop solar, floating solar, etc.

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Dear Helvita,
If you use the weighted average cost of capital (WACC) as a value for the DCF, then analysis has shown the range to vary widely by country–from as low as 2% in Germany, to close to 15% in Greece. This analysis show that countries within the same region as Indonesia would have a WACC in the range of 10%. See: Estimating the cost of capital for renewable energy projects - ScienceDirect

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