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Get in touch with usThe FPA Advisory Framework
Balancing a modern corporate energy portfolio requires highly targeted strategies, especially as organizations integrate flexible energy assets into their operations. To streamline the complex procurement of these assets, a highly structured advisory framework has been designed specifically for Flexibility Purchase Agreements. This framework provides strategic advice and solutions for purchasing, ensuring sustainable and cost-effective operations through a defined, multi-phase process.
The journey to securing a reliable Flexibility Purchase Agreement begins with a heavily fortified Engagement phase. Before entering the market, a solid operational foundation is established by performing internal Know Your Customer processes and agreeing upon a confidentiality agreement. A service agreement is then signed to explicitly define the services and provide the necessary mandates.
Following this groundwork, the process moves into a deeply analytical Strategy phase. Because flexibility assets operate differently than traditional base-load power, this phase requires collecting highly specific energy consumption and production cycling data. By determining company goals and performing rigorous volume analyses on these consumption and production cycling profiles, advisors calculate the fair value uplift prices unique to flexibility markets. This ensures the creation of a highly customized procurement or sales strategy backed by an initial market overview covering current pricing and regulation.
Armed with a data-backed strategy, the process transitions into the Solicitation phase. Strict project specifications are set before obtaining preliminary bids from interested producers or offtakers. These opportunities are then evaluated based on quantitative and qualitative assessments, carefully weighing volume, cost, and project maturity analyses. Once ideal counterparties are identified, direct introductions are arranged and final bids are requested. This leads directly into the Execution phase, where the preferred opportunity is recommended and selected. Advisors assist with negotiations between the producer and offtaker, advising on terms and conditions to successfully prepare a draft term sheet and secure a definitive agreement.
Securing the contract is merely the first step of a long-term commitment. To address this, robust management services monitor contractual compliance before the project's official start date. During this initial management period, facilities are advised on industry standards and best practices for sustainability claims, and they receive assistance with marketing and promotion activities, including press releases.
For clients requiring deeper operational integration, an optional ongoing management phase is available to monitor contractual compliance after the start date. Support is provided for internal budgeting or mark-to-market accounting by calculating monthly settlements and validating invoices. Crucially for flexible assets, periodic reports on contract performance are provided, explicitly tracking pricing alongside the specific cycle volume.
Beyond these bespoke advisory services, the broader environmental commodity market is accessed through the Viridian Exchange. This digital multilateral trading venue removes barriers to trading environmental certificates by providing direct market access built on clarity, certainty, and ease. Users can execute trades instantly and safely at real-time prices without suffering from delays, information asymmetry, or hidden spreads. Combining this highly structured Flexibility Purchase Agreement framework with the institutional-grade security of the Viridian Exchange offers a transparent solution for navigating the fast-paced world of energy flexibility.
