Pioneer Community Energy Leverages the Power of Shell Energy
Shell Energy’s renewables portfolio supplies Pioneer Community Energy with competitively-priced firm and flexible supply
Pioneer Community Energy
- 11-year term
- 1,675,000 MWh of renewable energy
- Flexible contract
Pioneer Community Energy solicited proposals for long-term supply commitments that would meet California’s renewables portfolio standard (RPS) requirement to have 65% of all renewable purchases secured via long-term contract beginning in 2021.
Shell Energy proposed a long-term solution that secures renewable energy from a number of producers within its portfolio, providing Pioneer with firm volumes throughout the entirety of the 11-year term — something that cannot be offered through a typical agreement with a single-source project – as well as supplemental volumes that can be delivered on an optional basis to augment Pioneer’s renewable energy supply portfolio.
This diversified supply arrangement allows Shell Energy to offer a more flexible agreement that maintains competitive rates while increasing volumes as Pioneer’s renewable energy requirements evolve over time.
Shell developed a customized solution, which provides Pioneer with both firm and optional volumes for the entirety of its 11-year term.
The client selected Shell Energy over numerous competitors because it was able to design a tailored solution leveraging Shell’s diverse portfolio, scale and trading expertise to provide a flexible contract that includes base and optional volumes* that vary by year over the delivery term. This allows Pioneer to shape its volumes annually in step with its forecasted renewable energy needs.
The agreement also helps Pioneer Community Energy meet its near-term and long-term renewable energy requirements under one thoughtfully customized agreement.
*Shell Energy is obligated to meet the annual Base Volume and has the right, but not the obligation, to supply the Optional Volume for each year.
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