In Part 1 of this series, we tracked the rapid growth of the renewables industry over the past decade, and pointed to the common problem of insufficient cost management during that period. In Part 2, we shared experience-based lessons about how and where to spot opportunities for optimization. This kind of work produces rapid value in the form of quick wins, and can set your company up for operational successes over the coming decade.  

But costs don’t arise in a vacuum, and management teams assessing cost structure as something separate from growth strategy miss out on the biggest areas where long-term value can be unleashed. In the renewables sector, strategy and cost go hand in hand. You can’t tackle your long-term cost structure without influencing the ways in which your company will choose to grow; and you can’t make informed decisions about future origination and capital investment activity unless you understand the real costs each project is likely to incur over its lifetime.

Given our sector experience, WP&C can help tackle the hard decisions your company faces. We can help chart a course toward maximally profitable long-term growth, informed by the true cost to originate, develop, and operate given your company’s true capabilities. We have experience tackling issues including:

Geographic Considerations
Identifying attractive geographies for your unique business is crucial. Understanding how geography affects LCOE and its implications for origination and development planning is essential for strategic footprint decisions.

Optimal Production Technology Mix
With the Levelized Cost of Energy (LCOE) for solar nearly equal to wind, what mix of production technologies best suits your forward-looking strategy?


Battery Storage Strategy
Given your project pipeline, determining the best battery storage strategy is vital. Battery facilities significantly increase the total energy you can feed into the grid or sell, allowing for time-of-day pricing arbitrage. However, their high upfront cost and rapid depreciation can significantly raise LCOE. Ensuring your decision-making process regarding battery setup is nuanced will help secure the right investment mix.


Customer Portfolio Optimization
Is your mix of customers ideal for your portfolio? Are you serving the current mix of power demand effectively? Anticipating future changes and securing the right mix of Power Purchase Agreements (PPAs) and commercial terms can maximize long-term value. Enhancing market development and customer attraction capabilities is crucial.


Distribution Landscape Utilization
How can you best leverage the current distribution landscape? Assessing the impact of limited distribution capacity in some markets and identifying opportunities, such as large-scale battery storage projects in strategic locations, is essential.


Lifecycle Management Decisions
Ideal lifecycle management involves planning for asset disposal, making cost-justified repowering decisions, and investing in capital improvements and market-leading upgrades, such as blade and motor replacement.

Whatever else the coming decade brings, it’s certain to bring even more demand for renewable energy production. As you plot your strategy for growth, WP&C is well positioned to help. For more information on our renewables practice, start the conversation here.