Smart Energy Voices - Episode 109

Heard at REF: How to Plan Your Optimal Clean Energy Roadmap at Least Cost

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Challenges in Clean Energy Roadmap Planning

Madaeni stresses that clean energy procurement is not just about sustainability but also involves significant financial investments and risks. He talks about the challenges posed by changing regulations and the importance of a comprehensive approach that includes financial, market, and regulatory considerations.

Verse's approach involves understanding organizational pain points and applying tailored tools that help companies set, execute, and manage their sustainability goals. He highlights the need for collaboration across the industry to address the complex challenges of sustainability as well as a technology-forward approach.

Case Study: Evaluating Options for a Sustainability Program

Madaeni presents a case study featuring Heirloom, a cutting-edge carbon capture company, and the company’s development of an optimal sustainability program focused on reducing Scope 2 emissions. The case study highlights the complexities of clean energy procurement, considering factors like PPA prices, locational benefits, time-based energy matching, and emissions data. Verse used its software to run multiple scenarios, helping Heirloom evaluate different clean energy strategies, including annual and hourly matching, to ensure their operations are both sustainable and financially viable. Madaeni emphasizes the importance of a data-driven approach to making informed decisions to align sustainability goals with energy procurement.

Cost Analysis and Optimization Techniques

In the case study, Madaeni delves into scenarios to evaluate clean energy programs through detailed metrics and results, which include load costs, implied REC prices, RE percentage (annual renewable energy matching score), emissions reduction, and contracted CFE (carbon-free energy) score. He emphasizes the importance of understanding the “green premium,” which refers to the incremental cost associated with procuring clean energy, and how different strategies like annual matching and carbon matching impact this cost.

Madaeni also covers the significance of location, timing and technology in optimizing clean energy strategies. Additionally, he notes the importance of asking the right questions, understanding the assumptions behind projections, and using advanced technology to make informed decisions about clean energy procurement, hinting at the potential of integrating batteries into a strategy to reduce costs further and optimize outcomes.

Connect with Seyed Madaeni

• On LinkedIn

Seyed has been building software products to optimize the electricity sector for 10+ years. Before founding Verse, he served as the Chief Digital Officer at Fluence, where he played a central role in the company’s successful $5B+ IPO, overseeing its digital business unit. Seyed was instrumental in growing Fluence’s renewable portfolio to over 10GW. Earlier in his career, Seyed was the CEO of AMS, where he pioneered a flagship market bidding product that eventually led to the company’s acquisition by Fluence. Seyed also contributed significantly to Tesla, SolarCity, and PG&E, providing technical oversight for several groundbreaking wholesale market-facing software applications. Seyed holds a BS and MS in electrical engineering from the University of Tehran and a PhD in Systems Engineering (Operations Research) from Ohio State University.