Citi has entered into a contract to purchase retail, renewable power from MP2 Energy for a multi-year term at its Roanoke, Texas, data center, the financial services provider announced on January 10. The contract will provide Green-e certified renewable energy for 50 percent of the data center’s power needs.
The contract takes into consideration the forecasted hourly energy consumption for the facility, which comprises a data center and service building.
This deal marked the first collaboration between two divisions of the company to meet its energy needs – Citi Realty Services (CRS), an internal unit responsible for the company’s facilities; and the Citi subsidiary, Citigroup Energy Inc. (CEI).
CRS and CEI worked with Woodlands, Texas-based retail energy supplier MP2 Energy, to arrive at a structure that allowed Citi to fix its retail rate and use renewable power at an attractive price level.
“This deal will provide a renewable source of energy as well as price certainty to one of our key data centers,” said Global Head of Operations for CRS John Killey, adding, “It also demonstrates the value that comes from the close collaboration between CRS and Citigroup Energy and Citi’s commitment to sustainability across its own operations as part of its Sustainable Progress strategy.”
“In this landmark renewable energy deal, we were able to work together to ensure that the various risks inherent in commodity markets are allocated, based on which entity is best positioned to manage each one,” said Roxana Popovici, a managing director responsible for renewable power transactions within CEI.
“As companies like Citi look to ramp up their purchase of renewable energy,” Popovici said, “structures like the one employed in this transaction will become increasingly important and will be critical to scaling the market for renewable energy.”
Citi has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions
MP2 Energy delivers about 1,400 MW to commercial, industrial and residential customers in Texas, Illinois, Pennsylvania and Ohio.