Sustainable Direct Offtake Agreements for everyone
We realise the power price for generators and off-takers of renewable energy with this. We are doing this by matching all interests in a way that is as transparent and predictable as possible. See us as a new kind of intermediary for renewable energy, creating a direct connection between generators and off-takers. We are doing this by matching all interests in a way that is as transparent and predictable as possible.
We have facilitated six large electricity contracts since 2008 (940MW). We have contributed in an optimized power price setting for generators and off-takers of renewable energy. This leads to advantages for both the generator and the off-taker: a 5% higher power price for the generator and a 10% lower power price for the off-taker. This of course highly depends on the profiles of both sides.
To achieve a direct cooperation between generator and off-taker, we go through a five-step process. Details of each step of the process can be found below.
There are two starting points:
1. from the generator we identify off-takers that are interested in sustainable energy with guarantees of origin, or
2. from a group of off-takers we find generators. We validate whether the electricity volumes, generation and consumption profiles match and whether there is a business fit.
We provide transparency and insight into interests and starting points
We use a blue print of the Direct Offtake Agreement. This provides clarity in the interests and starting points of the parties and validates whether there is sufficient confidence in successful and long-term cooperation.
We match all interests and starting points and record them.
To conclude a Direct Offtake Agreement, two contracts must be signed. A contract between the generator and the off-taker to secure the cash flows and a tripartite contract between generator, facilitator and off-taker to ensure the role and responsibilities of the facilitator.
We facilitate all conversations and structure both contracts
We meet mutual conditions and expectations. The off-taker has the most important conditions: supply and price security and flexibility. In the interest of the generator, payment guarantees are provided by the off-taker: after all, it is a long-term relationship.
We meet external (banking) conditions. From the generator the most important conditions are aligned with the banking conditions, which provide the project financing. The cash flows for the generator must be secured.
We organize the distribution of additional revenue. During the term of the agreement, the trading result (and therefore the energy yields and costs) will be optimal. The financial space (surplus revenue) that arises is divided between the stakeholders. We ensure that we have organized this distribution in advance and that it’s legally structured.
We define the responsibilities for OutSmart (facilitator). The facilitator's responsibilities are mainly operational in nature. In a separate tripartite contract the tasks (scope) and responsibilities are detailed. The most important elements are the trade mandate and business continuity. These elements cover any financial risks for the generator and the off-taker.
We relieve organizational issues during the implementation of the Direct Offtake Agreement.
We set up the IT platform. We do this in preparation for the first power delivery for new projects or the switching moment for existing projects.
We take care of the IT structure and apply 'best in class' software solutions. Think of Microsoft Azure machine learning and smart algorithms developed in-house.
We connect all data links or interfaces to the platform and test them.
We make a handbook. In this we guarantee the operational tasks and responsibilities, we describe all agreements and we explain the IT platform, the data links and of course the agreed trade mandate.
With this transparent way of working and open communication we ensure that we are ready in time for the execution and operations of the Direct Offtake Agreement.
We Optimise during Operations.
We deploy innovative automation solutions. Our IT setup, data management and the application of smart algorithms are essential. We take care of the IT structure and apply 'best in class' software solutions. This is Microsoft Azure machine learning and smart algorithms developed in-house.
We make 96 forecasts per day, seven days a week. These are production and off-take forecasts for both the generators and off-taker. This takes into account the availability and off-take variations. The forecasts of production and offtake are netted per quarter-hour value. Any net overproduction (balance) will be traded on the day-ahead or intra-day trading market.
We steer real-time on deviations of forecasts. During the actual production and take-off, any deviations from the forecasts can be corrected by means of production control (curtailment) or by controlling the demand (demand side management). This with the aim of reducing the imbalance costs with grid operator TenneT.
- Balanced power trading structure: Commercial, Operations, Legal, Risk Management
- Proven legal and operational framework
- Predefined trading mandate
- Low market entry and service costs
- State of the art IT structure and algorithms
- 940 MW in portfolio to facilitate Offtake Agreements