Decarbonization and Adaptability in a Volatile Market

Last month, CPV Chief Commercial Officer and President, Sherman Knight, spoke on a panel of industry leaders at The Energy Professionals Association (TEPA) National Conference in Austin, Texas. In our last blog, we covered his candor about how new technologies are driving an increasing demand for power, making it a high-value necessity more than ever before.

The panel also emphasized that while decarbonization remains a top priority, adaptability and customer-centric solutions will be crucial for success in today’s volatile market.

Let’s address what Sherman Knight said about decarbonization and a customer-centric approach.

Decarbonization and Price Considerations: A Balancing Act

There’s a balancing act between decarbonization and price considerations. While decarbonized energy was once cheaper, the cost dynamics are evolving. Sherman highlighted how decarbonized energy options may no longer always be the lowest cost, making it a tough decision for consumers.

He pointed to the industry’s shift toward a differentiated approach—where the energy commodity is priced differently depending upon its time of day and source of power, whether wind, solar or other forms of decarbonized energy. This shift is compounded by growing market volatility, which makes long-term financial planning and forecasting more difficult to predict.

To this extent, Sherman added:

“That’s where you see the rubber meet the road in terms of customer’s preference. That’s a hard decision for consumers. Five years ago, with renewable power being extremely cost-effective, everyone was in on sustainability. Now, we are seeing that it is a little more expensive. Hence, [a] differentiated approach.”

He continued: “There is a shift, but I think if one is taking the long road, as the development company it takes roughly seven years to start from concept to, to develop, to construct, between now and when you get the megawatts on the grid – so you must take a long view. We’ve clearly seen a long-term trend towards decarbonization. Now we’re seeing a little bit of a wave whether it is financially driven, philosophically driven, or less important to their brand to financially commit to decarbonized power.”

Flexibility and Customer-Centric Solutions

CPV Retail aims to be highly adaptable, offering flexible deal structures that allow customers, especially large ones with net-zero targets, to choose solutions that align with their sustainability goals. We use our growing portfolio of renewable and low-carbon assets to provide customers with options that meet both their current and future energy needs.

“To have true decarbonization, it needs to be done responsibly, and we have a vision for a balanced energy landscape through our renewable assets and low-carbon generation,” Sherman noted.

As we grow our retail footprint, we will continue to add our own assets into the mix for customers so we can use our deep industry knowledge and portfolio to help them meet their goals.