Rota Electricity_RFI_Sept 2026.pdf

Request for Information (RFI)

Electricity Supply and Innovative Risk Management Structures

Naval Station (NS) Rota, Spain — from May 2027 Contract Performance Period

The United States Navy (USN), represented by Naval Facilities Engineering Systems Command Europe, Africa, Central (NAVFAC EURAFCENT), is seeking information from qualified retail electricity suppliers, utility operators, and energy developers regarding electrical power supply strategies for Naval

Station Rota.

This RFI is designed to help the USN understand how industry leaders utilize advanced pricing, hedging, and integration models—including hybrid power purchase agreements (PPAs), battery storage, "multi-click" dynamic pricing, and updated collective self-consumption structures—to optimize costs and manage risk for large-scale, high-voltage consumers. USN must procure electricity for FY27 and upcoming years within the next six-months to follow-on the conclusion of the current contract falling on

April 30th, 2027. In parallel, and as part of the greater energy solution effort, USN intends to explore broader ideas for leveraging the market through either the primary procurement and/or other structures of direct energy projects serving NS Rota in the longer term.

In 2023, forward curves predicted a steady decline in prices through 2027, making our 3-year Firm Fixed

Price (FFP) highly attractive. While renewables keep daily wholesale prices low on average, in 2026 forward contract prices are surging which may increase risk premiums in multi-year FFP contracts.

Conversely, given that Spain has recorded over 500 hours of zero or negative prices in 2025 with solar cannibalization, NAVFAC is curious how these pass through to customers.

Feasible contract terms for renewable Power Purchase Agreements (PPAs) have shortened from 10+ years to having payback within 5, including battery storage hybrid agreements. NAVFAC may be interested in the exploration of bundled, utility-managed PPAs and profile-shaping storage agreements to flatten Rota's

Time of Use peak costs.

Energy resilience and budget stability are the US Government’s top priorities for installations. USN is primarily interested in avoiding high risk premiums up front while also protecting against price volatility through this energy procurement. In addition to the continuous need for grid-provided electric service, leveraging localized or on-site generation would be optimal, if feasible. Within the USN fenceline, there is a collection of Solar PV assets totaling ~7MW that serve facilities on site. If adequate land is available on or near the installation for additional generation, given the collective consumption threshold increase to 10MW in 2025, NAVFAC would be interested in seeking a resilience opportunity supporting the energy requirements as well.

RFI Questions for Industry

The following questions relate to the electricity supply contract that NAVFAC intends to enter into for the period from May 2027 to April 2029. At the same time, NAVFAC intends to assess the possibility of entering into a structured supply contract for subsequent years (from May 2029 onwards) which may include off-site PPAs, virtual PPAs, on-site self-consumption, collective self-consumption and multi-click or equivalent pricing mechanisms.

Please note that since 2008 the USG obtains a firm fixed price for the electrical power commodity in

Spain, which remains a preferred option for planning and budgeting purposes. At present, given the market prices volatility, we are evaluating any alternate option that may result the most convenient and feasible for us to select for our upcoming solicitation in Spain for said 2027-2029 period.

1. What pricing model (e.g., FFP, Index, or others) can your company currently propose to the USN to achieve its goals of budget stability and energy resilience?

2. What hedging mechanisms do you utilize to protect large high-voltage customers (Tariff 6.2TD) over a 2- or 3-year term given the recent rise in forward contract prices?

3. Does your company offer a multi-click framework?

a. If so, how does it operate regarding minimum volume thresholds, transaction fees, and options for vendor-managed execution?

b. Can you manage the clicks on the customers’ behalf within pre-set thresholds and time windows (execution mandate)? Could you provide an example?

4. Do you own or manage a portfolio of renewable energy assets and how does it affect your pricing?

a. How is the increasing frequency of midday solar cannibalization in Spain affecting supply risks and, consequently, the supplier’s risk premiums?

b. How does having (or not having) these physical assets impact the fixed-price or offers you can provide to the Navy, and does it allow you to offer lower risk premiums?

5. How does your company manage, and pass on to customers, zero or negative day-ahead market pricing under indexed structures? Are there any reconciliation mechanisms possible for fixed-price contracts?

a. How do significant fluctuations in onsite solar generation of the customer affect fixed-price contract volume tolerances, and how are those deviations settled?

6. Can your company execute a 5-to-10-year commodity supply agreement with a minimum 3-year initial firm-fixed-price period, followed by subsequent price fixing windows as established by contract, potentially locking in prices for the outer years when market conditions are highly competitive?

7. Does your company offer a program where the Navy can subscribe to a share of your existing off-site solar assets in Spain and receive monthly generation credits directly on our retail electricity bill? Is this similar to, or a part of an ACC (collective self-consumption) scheme?

8. Given the updated Spanish collective self-consumption (ACC) regulatory thresholds, could NS

Rota act as an off-taker from off-site generation assets? How would you integrate this off-site solar power with our main grid-supply contract? Will both appear on a single, consolidated monthly invoice?

a. Will your company provide the qualifying off-site solar asset directly from your own local portfolio, or would the navy be responsible for identifying or contracting with a third-party solar developer near the base?

9. Can your company offer a utility-managed PPA from your existing asset portfolio?

a. Can you offer this structure with a flexible, shorter contract term of less than 10 years

(e.g., 5 to 7 years)?

b. What are the minimum annual energy volume (MWh) or capacity (MW) commitments required for the Navy to qualify as an off-taker under this model?

c. How does it work on our monthly invoice?

10. Do you offer Hybrid PPAs that integrate renewable generation with Battery Energy Storage

Systems (BESS) on a single invoice to deliver a firmed, baseload-equivalent supply?

a. Can this be supplied immediately from existing or operational assets on Day 1, or would it require new construction?

11. How do the overall rates, balancing fees, and risk premiums of a 5-year bundled PPA compare to a standard 3-year firm-fixed price contract under current market conditions?

12. What other long-term contract structures or models would be mutually beneficial for both the

Navy and your company over a 5-to-10-year horizon? Please describe how these alternatives could lower our risk premiums while securing stable demand for your firm.

13. Would your company participate in a collaborative, bilateral Industry Day (virtual or in-person in

Rota/Madrid or other city)? What risk-sharing topics between the public sector and utilities should be prioritized on the agenda to ensure the Navy’s solicitation is commercially attractive for your firm?