Additional RFI Questions_Italy Electricity_April 2024 Revised.docx
DOCX document 15 KB Posted
- Attached to
- Italy Electricity Supply for U. S. Navy
- Solicitation number
- N3319124RITALYELEC
About this file
This document is a Request for Information (RFI) seeking comments from suppliers on potential obstacles to offering firm-fixed-price (FFP) electricity contracts for U.S. Navy facilities in Italy. The Department of the Navy is observing market stabilization and is interested in understanding suppliers' concerns about locking in pricing for 1-3 year periods, as well as the circumstances under which they would consider FFP. The RFI also asks suppliers to quantify the pricing differences between monthly average versus hourly settlement pricing, whether generation mix impacts their ability to offer FFP, and considerations around long-term renewable power purchase agreements. This is related to a pre-solicitation for an electricity supply contract across approximately 50 sites in Italy, issued by the Naval Facilities Engineering Systems Command (NAVFAC) Navy Region Europe, Africa, Central.
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Other files
| File | Type | Posted |
|---|---|---|
| Electricity RFI Sources Sought_Italy Electricity.docx | DOCX document | |
| DRAFT SOLICITATION MODEL.pdf |
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1. A few suppliers stated that they could not provide Firm-Fixed-Price (FFP) offerings, due to continued market volatility. The Department of the Navy is observing market stabilization that is forecasted to continue in coming years. Can you elaborate on your sources and what market dynamics are preventing your confidence in supplying a FFP at this time, for one to three years?
2. What are the circumstances under which you would consider offering a FFP contract structure?
3. Can you quantify the pricing difference between basing monthly price adjustments on PUN monthly averages versus PUN hourly settlements?
4. Does the generation mix and your energy sources have an impact on your ability to lock in pricing in the area? (e.g. Is a renewable-focused purchase more or less likely to work in a FFP structure?)
5. If you are able to offer long-term renewables supply agreements, like a PPA, what are some pricing and contract structure considerations (e.g. type of PPA, price premiums compared to traditional power supply, etc.)?
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