Accelerating corporate procurement of renewable energy in India

Kreate Energy’s Renewable Power Solutions: Integrated Corporate Power Procurement Strategies

The goal:

Corporate customers often work with integrated power solution providers, intermediaries and knowledge based active trading companies to meet their power requirements from multiple generation sources. This case study highlights how Kreate worked with a large power consumer in India to help the customer lower its cost of power and increase the share of renewable power by revamping the customer’s power procurement strategy.

The background:

Kreate Energy (formerly known as Mittal Processors Pvt. Ltd.) is a large real-time power solution provider in India. It has traded more than 50211.90 million kWh since 2009 and traded 460.91 million kWh in the month of April 2018.

A large corporate customer approached Kreate to study its demand pattern and manage its power procurement with plans to reduce power procurement costs while increasing the share of renewable power.

The unique aspect of this project is that even though the customer signed a single contract with Kreate; at the back end, power is being sourced from various wind and solar assets and the procurement options have been strategised based on the customer’s power demand profile.

Purchasing renewable electricity is becoming more attractive for companies across the world. In India, increasing grid power tariffs for commercial and industrial consumers, falling prices for renewable projects and renewable energy’s contributions to sustainability commitments have led to companies actively procuring renewable power for their operations.

One option for companies to buy renewable power is to use corporate renewable Power Purchase Agreements (PPAs). A PPA is a contract between a power buyer and a power producer to purchase electricity at a pre-agreed price for a pre-agreed period of time.

However , Kreate Energy adds value by analysing the consumption pattern and advising the right source of Renewable Energy , Thermal or Power Exchanges for savings energy cost and contributing to low carbon and Green Energy from Wind , Solar, Hydro , Biomass & Baggase based Renewable Energy Generators.

The strategy:

By installing smart meters at the consumer premises, Kreate studied consumption patterns. The smart meter provided data in 15-minute time blocks on a real time basis, which helped Kreate optimize the power procurement strategy.

Based on the analysis, Kreate proposed a solution to the client which included diverse sources of power and Open Access routes. It also carried out a risk analysis for the suggested renewable procurement strategy.

Various liaising and contracting services were offered by Kreate to make the renewable procurement process seamless for the client. This included:

·      Liaising for credit note adjustments

·      Multiple Power sourcing and savings optimization

·      Approvals from the local distribution company (R-Infra/TATA)

·      PPA execution

·      Financial modelling along with billing simulation

·      Follow-ups with seller for credit note

·      Hybrid solution of Solar , Wind , Biomass , Baggase and Hydro Power

Kreate was able to help the company meet almost 60% -70% of its overall power requirement through various renewable energy sources.

Based on this deal, the client has been able to save around INR 500,000 (~USD 7,500) per month. 

The outcome:

Kreate has successfully implemented this model in few states and is preparing to replicate it in other states. This will allow corporate customers in different parts of the country to both increase their share of renewable power and reduce energy cost under open access, without having to individually liaise with multiple renewable asset owners and power distribution companies.