Managing Low Carbon Energy Projects To Meet The Long-Term Goals of Asset Owners
Over 3 GW Currently Under Management.
Advanced Power’s expertise in construction, operations and risk management sits at the core of our business. We add value through:
- Deep industry understanding and asset knowledge
- Proficient commercial and technical optimization, financing, expansion or repowering
- Adept development, construction, operation and asset management
Today, we manage more than $3 billion in assets across the United States, including:
- Carroll County Energy (714 MW CCGT, Ohio)
- Cricket Valley Energy (1,141 CCGT, New York)
- South Field Energy (1,182 CCGT, Ohio)
- Cutlass Solar (140 MW PV solar, Texas)
In the near future we will be adding several projects to our asset management portfolio. We manage the assets mentioned above as owners. We treat all 3rd party owned assets the same way.
The Challenges Facing Asset Managers in the Power Industry
The energy industry faces two primary challenges, now and over the next several decades. These are the energy transition and the impact it has on market volatility.
The energy transition is defined as the move from fossil fuels to renewable energy, paired with increased electrification. The magnitude of this challenge is demonstrated by the $50 trillion in investment needed to achieve the goals of the Paris Climate Agreement by 2050.
The intermittent nature of renewable energy increases the need for peaking and baseload resources, creating an intersection between increasing demand for electrification, renewable energy and energy storage. Advanced Power has the expertise to help generation owners manage this intersection.
Advanced Power has a track record of providing financial stability in volatile market conditions. As an active commodity market participant, we have the ability and expertise to provide consistent cashflows to investors in varying market environments. All of this is done in a credit efficient manner that maximizes liquidity and drives down transaction costs. Additionally, our Asset Management group has experience in optimizing credit packages to further drive returns to equity investors.
As the energy transition progresses further, we expect markets to increase in volatility, putting further emphasis on the need for margin stability. Advanced Power's active margin management program provides this stability.
Asset Management Services
Our suite covers asset management services of every complexity you’ll experience in the energy market. Advanced Power’s expertise in construction, operations and risk management is borne out by experience: we manage over $3 billion in energy assets for some of the world’s largest third party institutional and strategic investors.
We have experience managing complex energy infrastructure on behalf of large shareholders and diverse sets of investors, including private equity, pensions, asset managers and more.
Finance and Accounting
Our track record for raising capital includes $5 billion of equity and debt since 2015. We have five years of consecutive clean audits for the asset portfolio.
Construction & Operations
Our dedicated construction management team is responsible for owner’s scope, local relations and contractors. The operations team provides management and oversight of O&M teams.
Health, Safety & Environment
Our dedicated (HSE) Health, Safety & Environment team supports thermal and renewable generation, as well as offering administration and oversight of all HSE requirements to ensure compliance.
We provide physical and financial commodity risk management for natural gas, electricity, RECs, capacity, emissions and FTRs. We maximize value and minimize risk through comprehensive risk management policies.
We assist with contract negotiations for all applicable agreements. We also provide corporate governance and legal review.
Regulatory and Reporting
We offer insight into relevant regulatory changes at the state, ISO and federal levels to help you stay compliant and we assist with all reporting requirements.
Asset Management Team
Pulling from a cross-functional pool of individuals at Advanced Power, the Asset Management group is able to provide the appropriate coverage to our customers to ensure that all aspects of our suite of services are being managed in a comprehensive manner.
We approach asset management using an active margin management model. Active margin management is an ongoing process that dynamically executes on market opportunities within the parameters of a robust risk management policy.
- Track changes and opportunities in the market
- Understand products and structures available
- Network with brokers, ICE and other counterparties to gain information
- Understand potential regulatory changes that are coming
Risk Management Policy
- Set clear goals and decision criteria based on a well-defined risk management policy and procedure
- Compare market opportunities to the fundamentals for the project
- Consider where and why fundamentals have changed
- Consider all market or regulatory risks
- Look for where the market opportunities intersect with the Risk Management Policy
- Execute and actively seek the next market opportunity
For more information about our asset management capabilities and services, please reach out using the form below.