Clean Energy Procurement & Risk Management

Clean Energy Procurement & Risk Management

ERM helps organizations cut through the complexity surrounding clean energy. We work with clients to identify the best-fit contracting solutions that will help them meet their climate and energy goals while managing risks and optimizing economic outcomes. 

ERM Coho | ERM Energetics

This advisory support is provided via two ERM companies: ERM Coho, based in the United States, and ERM Energetics, based in Australia.  

Mitigating risks in increasingly volatile commodity markets

Switching to clean energy is a cost-effective and impactful pathway to achieving climate goals at a time when sustainability leaders are facing tight deadlines related to public climate change commitments.

Clean energy represents a major departure from traditional electricity procurement and risk management practices. Buyers must navigate the needs and risk tolerance of internal stakeholders, and the challenges associated with complex power purchase agreements and environmental commodities. 

Not all products offered by clean energy developers, utilities, or other suppliers are the same. Risk allocation between the buyer, the load-serving entity/electricity retailer, and the renewable energy generator varies, as does the related pricing mechanism.

The market is complex and competitive. Identifying the best clean energy options, negotiating bespoke contracts, and striking the right balance between price and risk, requires savvy negotiation skills, experience, analytical capabilities and market intelligence.

Fast-track your clean energy transition by implementing a robust and forward-looking procurement and contracting approach optimized for rapidly evolving energy markets

Define and communicate strategic goals

Internal misalignment and a lack of strategic buy-in hampers success. Our experts support stakeholder engagement and organizational change management, at the outset and throughout strategy and implementation efforts, to enable successful project execution.

Access tailored and independent advice

We objectively assess all available clear energy solution options, including green tariffs, virtual power purchase agreements, structured products, community energy and storage arrangements, and behind-the-meter energy and storage initiatives, while maintaining independence and transparency.

Manage risk and avoid pitfalls

We assess key sources of risk – such as price, volume, shape risks, market volatility, project delays, asset performance, and counterparty risk – and recommend targeted mitigants in contract negotiations. Our approach focuses on securing optimal terms at competitive prices.

Why partner with ERM for Clean Energy Procurement & Risk Management

Comprehensive market intelligence and regulatory guidance

Forward-looking guidance

Robust quantitative risk analytics

Cutting edge energy procurement risk management protocol

Product and contract design process tailored to your risk tolerance

Economic and financial modelling

Technical and commercial due diligence (project development and counterparty)

Contract negotiation and ongoing performance management support

Stakeholder engagement

Licensed to provide advice on regulated financial energy derivatives and various carbon products

Outcomes

Contribute to decarbonization targets

Unlock financial opportunities

Build more sustainable business models

Secure stakeholder trust

Our partnerships

ERM has an ever-expanding ecosystem of partners across each key area of the sustainability value chain, enabling us to meet our clients’ evolving needs and scale our impact.

Explore partnerships
ERM in numbers

Our experience and insights are cross-industry and on a global scale

23,000

projects worked on in FY23

8,000+

employees in 40+ countries globally

152

countries where we worked on projects in 2023

3,000+

clients across all industries

Contact us

Get in touch with our experts to discover how our experienced teams across the world can meet your sustainability and environmental needs.

Consent

Coho Climate Advisors LLC (“Coho”), an ERM Group company, is registered with the U.S. Commodity Futures Trading Commission as a commodity trading advisor and is a member of the National Futures Association (NFA ID: 0542152).  Unless we have agreed separately in writing to establish an advisory relationship with you, the information provided herein or verbally in connection herewith is provided for general informational purposes only, is not tailored to your particular circumstance, and should not be considered commodity trading advice or as forming the basis of any advisory relationship with Coho.  Further, the information provided herein or verbally in connection herewith is not and should not be construed as legal advice. Trading in commodity interests and financially settled energy contracts, such as virtual power purchase agreements, can be complex and involves risk of loss that can be substantial.  You should consult with your own legal and accounting advisors before entering into any such contract or transaction.”

Further, Coho is not a law or accounting firm, and it does not provide legal, accounting or tax advice.  The information contained herein and attached as well as information provided elsewhere and through other means (e.g., verbally) is for informational purposes only, and is not intended to provide, and should not be relied upon for, legal, tax or accounting advice.  You are advised to consult independent and duly qualified legal, tax or accounting professionals before engaging in any transaction.

Energetics is authorized to provide financial product advice to wholesale clients and to deal in derivatives and various other products including carbon units, Australian Carbon Credit Units, Safeguard Mechanism Credit Units and regulated international emissions units under the Corporations Act 2001, Australian Financial Services License (# 329935).