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 the announcement that Virgin Limited Edition (Virgin) and NRG Energy (NRG) 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,” said Sir Richard Branson, founder of Carbon War Room (CWR). “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.”
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.
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.
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.
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