As businesses and institutions pursue cost reduction and sustainability goals, energy portfolios are becoming more complex. Long-term investments in performance contracts, renewable PPAs, conversions away from coal and increased on-site generation are changing the way energy is purchased and dramatically altering risk exposures.
PRX Energy integrates all energy transactions and investments into a single energy portfolio that provides a simple view of key performance metrics including cost trends, risk exposure and sustainability improvements. By viewing energy as an integrated portfolio of purchases and projects, a baseline of expected performance can be established over a long-term (10 to 30 year) horizon and compared to potential portfolio changes that can deliver improvements to cost, risk and sustainability.
An integrated energy portfolio provides all stakeholders with a common view and point of reference for consideration of long-term investments and short-term purchasing decisions. A comparison between the current baseline and future state strategies provides a clear ROI for investment decisions and incorporates the value of risk mitigation – an important value proposition that is often overlooked. Using an integrated energy portfolio, Finance, Facilities, Procurement and Treasury can all communicate effectively and make efficient decisions on energy investments and sustainability goals.
A large university modeled dozens of energy transactions and energy conservation investments into 30 year integrated energy portfolio in order to understand its long-term energy costs and market exposure and evaluate the benefits of future conservation and renewable energy investments. Using an integrated portfolio approach, investments in conservation, renewable energy and long-term natural gas pipeline capacity are being considered in the aggregate to understand the overall net benefit of all these important decisions and justify the required investments.