‘Energy Developer vs. Energy Advisor’: 3 Real-World Perspectives

You’re a renewable energy buyer and you may be asking yourself, “Do I need to hire an energy advisor firm to help me determine my renewable energy requirements and negotiate a savvy power purchase agreement (PPA), or am I safe in dealing directly with an energy developer?”

Marketplace surveys on how renewable energy advisors advertise their value, find their ‘job description’ (engineering, finance and legal expertise) mirrors most if not all the roles and benefits that experienced energy developers provide buyers. So, is it really true that energy developers are not aligned with the interests of their buyers?

And let’s ask another question: “If you’re an energy buyer who wishes to implement a renewable energy sourcing strategy that satisfies the demands of all your relevant stakeholders, why would you not deal directly with an energy developer to negotiate a mutually beneficial PPA and eliminate the “middle man”?

Erin Decker, an industry-leading sustainability expert with extensive renewable energy and PPA experience, provides a typical list of roles for energy advisors. These include:

  • Energy buyer education on the PPA creation process
  • Assistance with the customer internal approval process
  • Energy project identification
  • Energy project evaluation

In fact, experienced energy developers are more than capable to function in these roles and actually do perform them in the “real world”. The key word here is ‘experienced’… it’s important to select a developer firm that has a long and successful track record serving energy buyers.

Likewise, Inprova Energy, in their “How to Choose an Energy Advisor” guide, puts forth what they believe are the characteristics for “good” energy advisors:

  • A record of good performance in the market and membership of accredited bodies
  • A broad range of products and market expertise – both on supply and demand side
  • Realistic claims, personalized customer service, and a proactive well communicated business relationship

Again, energy developers already deliver successfully on all of these points. Furthermore, those developers with several projects in their portfolio are able to successfully overcome the “non-independent” perception that third-party energy advisors like to label.

Holocene Clean Energy develops, finances and constructs complete solar PV systems that create the solar energy it sells to smart energy buyers. By being fully engaged in the entire solar project lifecycle, Holocene offers its clients a streamlined and seamless process from an engineering, business and legal perspective. Moreover, Holocene believes its broad experience and expertise in serving energy buyers provides it with some really important value lessons that are worth sharing.

Here are three key benefits/perspectives to consider when working directly with an energy project developer like Holocene:

The “proximity” effect. Since energy developers are directly involved with their projects, they’re able to offer first-hand information on key PPA metrics such as pricing, reliability, sustainability, and regulatory concerns. Conversely, an energy advisor must go out to research and gather this information. Why not work directly with the source?

Experience is the key. If energy developers want to succeed in today’s marketplace, they must be able to adequately address all questions and concerns an energy buyer might have. Those developers with deep industry experience and stakeholder relationships will be the most capable “advisors” to the energy buyer since they can anticipate and rapidly respond to the buyer’s needs.

Why pay twice? Best practices show that energy developers already function as advisors to their buyers as a default throughout the business relationship. They provide the same value a third-party energy advisor does. So, why should energy buyers pay twice for the same information?

Holocene Clean Energy has had huge successes regularly serving buyers that generally know what they want in a renewable energy PPA and buyers who are just beginning the renewable energy sourcing journey…without the need for a third-party energy advisor.

Contact us today, and we can begin working with you to develop a solution to fit your unique energy needs.