ENERGY AS TENDER
The new (fuel less) energy model is based on technology, the model is totally capital driven as operational fuel costs are no part of it. This is a huge advantage of the new energy model. Technology is about the interest rate (and guarantees on actual capital availability), purchase price (and guarantees on actual delivery facility delivery), operation (and guarantees on actual operational performance), maintenance (and guarantees on actual maintenance costs) and of course the reason why the facility is made: the energy output (and guarantees on actual output performance). A good design of the new energy model has no wild cards. That's the beauty of the new energy model. No fuel. Just facilities. A model financial technocrats love: very facet can be designed, tuned and controlled. Fuel is not needed and risk can be insured. Just capital and performance. The bottom line of every production unit in the new energy model (micro, mesa or macro) is the ROI in energy against the investments and operational costs of the facility and the guarantees for that. As new energy model is very much on capital and speed, are abuse and bribe always right around the corner. Specification focused tendering ensures lowest interest rates, lowest maintenance costs and intervals, best operational output. The concept of specification based tendering is fixing the amount and making the specifications variable. This gives a focus from every party involved on performing on specifications (from interest, to low maintenance, to high outputs) and guarantees on them. This also exclude abuse and bribe very much. Suppliers will seek governmental insurance covering on their offers. Rates and guarantees are just another type of spec. Energy as Tender will deliver better performing energy facilities and by this reduce the cost price of the by this tendered facilities harvested energy and improve their ROIs. Planck Foundation in cooperation with Open Foundation will develop an open tendering model that can be used by third parties. For fair trade it's important that all bids are published so that other bidders can determine by themselves the quality of the offers. Tenders can have a limited period and a maximum purchase price. Energy as Tender is a concept capable of generating a massive energy transition investment wave.
Author: Gijs Graafland
Back to index page of Energy Finance
Download the full Energy Finance report in PDF