Background - Practices (Details)
Corporate Energy Procurement
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An increasing number of non-utility companies and other institutions are looking at the procurement of renewable energy supplies on a large-scale and long-term basis to both meet sustainability goals and hedge energy prices. Crowell & Moring's breadth of experience is particularly valuable to large energy customers seeking to replace carbon-intensive "brown" energy with renewable energy, achieve long-term energy cost certainties and increase energy efficiency:

  • For a distributed generation facility on-site, we can advise on regulatory and transaction structuring, siting arrangements, construction agreements (if the customer owns the facility) and power purchase agreements (if a third party owns the facility).
  • If the customer is purchasing renewable energy from an off-site facility or from a third party marketer, we can advise on power purchase agreements (PPAs) and other arrangements for energy purchases, and the bidding of such energy and related capacity if the facility is in an organized electricity market.
  • If the customer is seeking to procure renewable energy credits or other environmental benefits, we can advise on purchase arrangements, as well as reporting and compliance requirements.
  • Our experience representing project owners in the development and financing of renewable energy projects is a significant asset when representing the purchaser of a project's output; we know what is a necessary requirement for the project owner to support the project's financing – and what is not.

Crowell & Moring has represented numerous corporate and institutional buyers of renewable energy from large scale renewable energy facilities under a number of different structures, such as direct purchases, indirect or “virtual” PPAs, and multiple buyers from the same facility (acting together or separately. Our experience includes assisting in a buyer’s RFP or other seller selection process, negotiating “market” terms, assisting internal buyer stakeholders in understanding and approving the transaction and negotiating a buyer’s documentation when a seller is raising financing for its generating facility project.

Representative Engagements:

  • Corning Incorporated in negotiating a PPA to purchase 62.5 percent of the output of an 80MW renewable energy facility owned by Duke Energy Renewables
  • University of California in negotiating 25 year PPAs for the output of two solar facilities with an aggregate capacity of 80MW. When completed, the transaction was the largest non-utility purchase of solar energy in the U.S.
  • Lockheed Martin in negotiating a PPA to purchase 37.5 percent of the output of an 80MW renewable energy facility owned by Duke Energy Renewables.
  • A consortium of George Washington University, American University, and The George Washington University Hospital, in the negotiation of long term PPAs to purchase the output from a 52MW solar facility owned by Duke Energy Renewables. When completed, the transaction was the largest non-utility purchase of solar energy in the United States and the largest solar PV project in the eastern United States.
  • Enduring Hydro, LLC in negotiating a PPA for the output of a hydroelectric facility to supply 8 percent of the electricity used by Penn State University.