Introduction to Asset
Ownership
Marie Fontenot | June 3, 2026
2 Asset Ownership Overview
Asset Ownership Strategy
Concept of Asset Ownership
Asset ownership means direct control over energy infrastructure resources instead of relying on third-parties for ownership.
Strategic Benefits
Owning assets allows better project influence, cost management, and alignment with long-term infrastructure goals for risk mitigation.
Exploratory Discussion
This presentation introduces the topic for feedback and dialogue without seeking immediate decisions or approvals.
Future Analysis and Alignment
Further analysis and project exploration will build understanding and ensure leadership alignment in a changing market
3 Purpose of Discussion
Introduction to Asset Ownership
Introducing asset ownership as a strategic option for organizational growth and decision making.
Benefits and Analysis Needs
Outlining potential benefits of asset ownership and identifying areas requiring further analysis and understanding.
Leadership Engagement
Socializing the topic across leadership to invite feedback and build shared understanding on asset ownership.
Strategic Positioning
Positioning the organization to respond effectively to opportunities through early dialogue and capability assessment.
Some “live” project opportunities may be eligible for real consideration over the next few months.
4 Types of Assets for Ownership
Behind the meter solar & storage
Critical Municipal Facilities
DC Fast Charging Infrastructure
AvaCharge Assets
Wholesale renewable energy generation or storage
In front of the meter solar farms, wind farms, battery storage, etc.
Other Considerations
Transmission, distribution, etc
5 This presentation is
primarily focused on
ownership related to
wholesale
renewable energy
generation or storage
projects
How Wholesale Generation Is Owned Today
Independent Power Producers (IPPs)
IPPs dominate energy generation with 65%, privately held and funded by equity or venture capital.
Publicly Owned Utilities (POUs)
POUs make up 25%, are not-for-profit and often manage both generation and distribution for local communities.
Investor-Owned Utilities (IOUs)
IOUs form 10%, are for-profit companies shifting focus from generation to transmission and grid management.
7 Drivers of Third-Party Ownership
Federal Tax Incentives
Investment Tax Credit and Production Tax Credit encourage private investors to own renewable energy assets cost-effectively.
Ownership Dynamics
Utilities often use Power Purchase Agreements instead of direct ownership due to tax credit advantages favoring third parties.
Changing Credit Availability
Phase-out of tax credits will increase project costs and may reduce the benefits of third-party ownership models.
Every ~10% tax equity in a project = $8-10/MWh price reduction to PPA offtaker.
Future Ownership Strategies
Organizations may need to reconsider asset ownership as economic advantages shift due to evolving tax policies.
8 9
Opportunity & Value
Strategic Value of Ownership
Enhanced Control and Oversight
Ownership provides greater control over asset performance, maintenance, and operational priorities, reducing reliance on third parties.
Capturing Residual Asset Value
Ownership enables capturing residual value in land and interconnection rights, which appreciate over time.
Influencing Regulations and Permitting
Owners can influence permitting and regulatory processes, especially when serving as authorities having jurisdiction.
Long-Term Resilience and Flexibility
Ownership strengthens strategic flexibility and resilience by aligning asset management with organizational goals.
10 Economic & Operational Benefits
Cost Reduction Benefits
Asset ownership may reduce power costs compared to traditional PPAs by removing developer margins.
Developer tax incentives expire after 2030; municipalities maintain access to tax exempt funding.
Risk Mitigation
Mission vs Margin: while private equity utilizes financial engineering to extract maximum project value, Ava as a non-profit asset owner is focused on equitable community outcomes and public welfare.
Operational Flexibility
Ownership offers flexibility to adapt to market changes, policy shifts, and optimize dispatch strategies.
11 12
Risks & Tradeoffs
Key Risks of Ownership
13 Includes delays, cost overruns, and
challenges during project
development that impact ownership
success.
Construction Risk
Concerns balance sheet impacts and
securing capital or debt for asset
ownership.
Financing Risk
Involves managing operations,
maintenance, asset management,
and optimizing performance
effectively.
Operational Risk
Though unlikely, potential
catastrophic accidents (fires,
explosions, etc) result in immense
legal, financial, operational liabilities.
Safety Risk
Inherent risk that a capital-intensive
failure or environmental liability
would erode public trust
“Brand” Risk
Comparison With Alternatives
14 Tradeoffs & Assessment
Each structure involves tradeoffs
in risk, control, and economics
requiring thorough evaluation.
Asset
ownership
“Full” contract offtake
Financial-only hedge
Mitigate exposure to CAISO
market volatility
Yes Yes Yes
Ensure RA compliance Yes Yes No
Mitigate counterparty risk Yes Somewhat Somewhat
Ability to respond to
regulatory or legislative policy
changes
More than other
structures
Seller tries to make it hard or
make Buyer pay extra
No
Operational control &
flexibility
Yes (within
warranty terms)
Generally, yes (within
warranty terms)
No
15 Execution Approach
Ownership Entry Strategies
Greenfield Development
Greenfield development offers full control by managing site selection, land acquisition, and project development, though it is time-intensive.
Build Transfer Agreements
BTAs provide quicker asset acquisition during or after construction, reducing development risk and speeding ownership transfer.
Asset Buyout Post-PPA
Buying assets after PPA maturity involves waiting and complex valuation but can be a strategic long-term ownership approach.
Joint Ventures and Partnerships
Joint ventures combine shared risk and expertise, while partnerships with organizations like CC Power enhance collaborative opportunities and risk mitigation.
16 Key Considerations & Next Steps
Capital Allocation Importance
Determining investment scale and impact on financial planning is critical for successful asset ownership transition.
Strategic Timing and Phasing
Different ownership strategies have varied timelines and market dependencies.
Adopting a phased approach manages risk and builds expertise through gradual investment scaling.
Alignment with Policies
Align ownership strategies with long-term policy and market trends to maximize value and sustainability.
Next Steps for Advancement
Conduct deeper analysis, refine strategic options, engage counterparties on implementation options, and further discussion with the board for consideration
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