Online Auction Delivers Competitive REC Pricing to MMA Renewable Ventures
WORCESTER, MA, March 8 /CNW/ - World Energy Solutions (TSX: XWE)
announces the completion of its first online forward auction for selling
renewable energy credits. Conducted for MMA Renewable Ventures, LLC, a
subsidiary of Municipal Mortgage & Equity, LLC ("MuniMae," NYSE: MMA), the
auction was a pioneering transaction that enabled MMA Renewable Ventures to
leverage online technology to attract competing bidders wishing to purchase
solar renewable energy credits (SRECs) needed to comply with New Jersey's
Renewable Portfolio Standards. The auction resulted in the sale of 1500 SRECs,
the equivalent of 1500 MWh of renewable energy, to be delivered over a
28-month contract period beginning in January 2007. MMA Renewable Ventures is
a provider of third-party renewable energy project finance solutions.
"MMA Renewable Ventures is committed to optimizing the full spectrum of
financial and technological factors to deliver cost-effective renewable energy
projects, and SRECs are a critical piece of that economic puzzle," said Matt
Cheney, CEO of MMA Renewable Ventures. "An innovative new tool in our
renewable energy finance toolkit, the World Energy Exchange allows us to
quickly reach a much larger pool of buyers in the competitive SREC market.
With a winning bid that was 25 percent higher than the initial bid, the online
auction likely garnered a higher price for our SRECs than we would have
achieved through a traditional process."
The SRECs were auctioned for MMA Renewable Ventures through a World
Energy Channel Partner, the Dome-Tech Group, a provider of energy efficiency
and clean energy project development and consulting services.
"We've administered World Energy's online auction for energy purchases,
but this is the first time the system has been used for the sale of SRECs,"
said Ed Liberty, Vice President of the Dome-Tech Group. "As the selling price
of SRECs increases, the economics of a solar photovoltaic installation project
improve. Buyers and sellers alike will benefit from having this new tool at
work in New Jersey's solar energy market as we transition from rebates to a
As part of this venture, MMA Renewable Ventures financed a solar power
project initiative through a power purchase agreement (PPA) with one of
Dome-Tech's long-time commercial and industrial clients. The client agreed to
the installation of solar panels on the roof of its manufacturing facility in
return for a guaranteed source of energy to help power its facilities. The PPA
enables the client to purchase the energy output of the system without having
to purchase the system itself. MMA Renewable Ventures in turn benefits from a
long term power sales agreement with the client and the sale of solar
renewable energy credits to electricity suppliers seeking to comply with New
Jersey's Renewable Portfolio Standard.
"We are pleased that Dome-Tech had such a successful result on the retail
energy side that they chose us for the forward auction for the SRECs," said
World Energy President Rich Domaleski. "We believe that the auction model is
ideally suited to the burgeoning green market as it is efficient, transparent,
and, we believe, it extracts the best price out of the market. With a tool
like this, project developers can improve project economics and accelerate
implementation of green alternatives. We are proud to have been part of this
venture with Dome-Tech and MMA, particularly since, to the best of our
knowledge, this is the first SREC on-line auction in the state's history."
About World Energy Solutions, Inc.
World Energy is an energy brokerage company that has developed the World
Energy Exchange online auction platforms, through which a diverse set of
energy buyers and sellers can trade energy, financial instruments and
renewable energy credits in a fiscally efficient and process compliant manner.
To date the company has brokered over 31 billion kilowatt hours of electricity
and 64 million decatherms of natural gas.
About the Dome-Tech Group
Founded in 1989, the Dome-Tech Group is a leading provider of energy
efficiency and clean energy project development and consulting. With offices
in both New Jersey and New York, the company was named New Jersey's First
Clean Energy Market Innovator by the New Jersey Board of Public Utilities and
the Clean Energy Office. The company's five Centers of Excellence specialize
in optimizing building systems and implementing energy-efficient and
renewable-energy. Dome-Tech services a wide range of clients in the
pharmaceutical, institutional, healthcare, K-12 and commercial markets. For
more information, visit www.dome-tech.com.
About MMA Renewable Ventures
A wholly-owned subsidiary of MuniMae, MMA Renewable Ventures finances,
manages and operates renewable energy assets in the United States. The Company
provides customized financial solutions through debt and equity investments,
leases and Power Purchase Agreements to build distributed clean energy
generation plants. MMA Renewable Ventures is dedicated to delivering
competitively priced, clean energy for customers, strong partnership options
for project developers, and exceptional opportunities for institutional
investment in the renewable energy sector. For more information about MMA
Renewable Ventures, visit www.mmarenewableventures.com
This press release contains forward-looking statements that are based on
our current expectations, beliefs, assumptions, estimates, forecasts and
projections about the industry and markets in which World Energy Solutions
operates. The statements contained in this release are not guarantees of
future performance, are inherently uncertain and involve certain risks,
uncertainties and assumptions that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed in such
forward-looking statements, and such statements should not be relied upon as
representing World Energy Solutions' expectations or beliefs as of any date
subsequent to the date of this press release. We do not undertake any
obligation to update forward-looking statements made by us. Important factors
that may affect future operating results include: our revenue is dependent on
actual future energy purchases pursuant to completed procurements; the demand
for our services is effected by changes in regulated prices or cyclicality or
volatility in competitive market prices for energy; we depend on a small
number of key energy consumers, suppliers and channel partners; factors
outside our control affect transaction volume in the electricity market; and
other factors identified in our Registration Statement on Form S-1 and
subsequent reports filed with the Securities and Exchange Commission.
For further information:
For further information: Media Relations, Ginger Juhl, Juhl
Communications, (720) 200-4082, firstname.lastname@example.org or Investor
Relations, Jim Parslow, World Energy Solutions, Inc., (508) 459-8100,