CohnReznick Think Energy Powers RFP Behind Necker Island Renewable Energy Deal

  CohnReznick Think Energy Powers RFP Behind Necker Island Renewable Energy
  Deal

Innovative Diesel Reduction Agreement Provides Model for Successful Microgrid
                      Deals Across “10 Island Challenge”

Business Wire

BETHESDA, Md. -- February 5, 2014

CohnReznick Think Energy (CRTE) created the successful request for proposal
(RFP) process and the first draft of the innovative Diesel Reduction Agreement
(DRA) that made possible yesterday’s announcement that Virgin Limited Edition
(Virgin) and NRG Energy (NRG) had agreed to develop a renewable energy driven
microgrid that will dramatically reduce diesel fuel usage on Necker Island,
home of Sir Richard Branson.

“The potential for more renewable energy across the world is huge especially
in places like the Caribbean, where islands offer an excellent test bed to
demonstrate and scale innovative, clean energy solutions. Necker is an ideal
‘guinea pig’ for the Carbon War Room’s Ten Island Challenge and will be able
to show the potential of ‘state-of-the-art’ technologies in renewable energy,”
said Sir Richard Branson, Founder of Carbon War Room (CWR).

CRTE is committed to providing the management necessary to execute the complex
RFPs and design the innovative deal structures needed to produce
groundbreaking accords that eliminate the use of fossil fuels, provide sources
of clean power, and reduce the cost of that power for the people of the
Caribbean.

“Traditional Power Purchase Agreements don’t work in the island environment
and for the ‘10 Island Challenge’,” stated Mark Crowdis, President of CRTE.
“They don’t support energy efficiency, load sharing, or investment in smarter
renewables, and the complex flow of power makes billing by kilowatt-hour (KWH)
impossible.”

The new and unique DRA idea was initiated by Homer Energy (HOMER) and CRTE,
and further developed by CRTE with valuable input from Virgin, NRG, and HOMER.
The final agreement provides an incentive for NRG to undertake energy
efficiency upgrades on the island, thereby reducing the size of the renewable
energy system, while still attaining a 75% initial elimination of diesel
consumption with incentives to reach a goal of 100% over a 20-year period. The
DRA provides a payment to NRG for each gallon of diesel eliminated from
baseline consumption through the use of renewable energy and energy
efficiency.

“We are immensely proud to be a partner in CWR’s ‘10 Island Renewable
Challenge’,” commented Crowdis. “With escalating fuel costs, enhanced
microgrid technologies, and increased investment, we are at a tipping point in
the execution of renewable energy projects that provide significant economic
and quality-of-life benefits to the region. With agreements such as the DRA
now serving as a model, Necker Island is just the start.”

To support Sir Richard Branson’s Necker Island Renewable project that
culminated in the innovative DRA, CRTE designed and executed a fair,
consistent, and transparent RFP process to solicit bids for the project.
Drawing on the firm’s successful track record in executing energy procurement
services in diverse geographies, CRTE collaborated with HOMER Energy, Virgin
Limited Edition, and CWR to analyze the bids of more than 28 companies that
responded to the RFP. The winning bid was selected based on a combination of
factors, including: technical feasibility, practical experience, financial
strength, local job creation, quality programs, cost, contract terms and
provided warrantees and guarantees. The final decision was made by Virgin’s
Necker Island team.

Crowdis explained, “The RFP process was designed to be an open competition for
bidders to demonstrate their ability to deliver the greatest carbon reductions
at the lowest total cost, while providing a stable source of power to the
region. Equally as significant, CRTE constructed the process as a replicable
model that can be used as the basis for deals across CWR’s ‘10 Island
Challenge’.”

CohnReznick Think Energy

CohnReznick Think Energy was founded in 2000 as a full-service renewable
energy consulting firm operating in the United States and internationally,
specializing in request for proposal (RFP) management, project development
support, due diligence advisory, and energy purchasing services. The firm has
extensive experience in all aspects of energy and renewable energy markets,
working with commercial and industrial consumers, government agencies,
investors, project developers, educational institutions, and non-profits.
Visit www.crthinkenergy.com for more information.

Carbon War Room

The Carbon War Room is a global entrepreneur initiative set up by Sir Richard
Branson that accelerates entrepreneurial solutions to deploy profitable,
scalable clean technologies across industries, and is a registered U.S.
non-profit. For more details please visit www.carbonwarroom.com or contact
Maya Doolub on mdoolub@carbonwarroom.com. For press enquiries please contact
press@carbonwarroom.com.

Homer Energy

HOMER Energy LLC provides software, services, and community tools to
professionals, researchers, and enthusiasts in the energy industry who desire
to analyze and optimize distributed power systems and systems that incorporate
high penetrations of renewable energy sources. Based in Boulder, Colorado,
HOMER Energy was incorporated in 2009 to commercialize the Hybrid Optimization
Model for Electric Renewables (HOMER), which was developed by the National
Renewable Energy Lab, a division of the U.S. Department of Energy. In addition
to the software, HOMER Energy provides a range of consulting services related
to the policies, economics, and technologies of renewable and distributed
power.

Contact:

CohnReznick Think Energy
Mark Crowdis, 301-280-7922
mcrowdis@crthinkenergy.com
 
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