Pexapark advises on EKZ Renewables and Axpo solar PPA

Renewable energy companies in the Iberian markets have taken a leading role in the development of fully or partially merchant wind and solar projects. In Spain, many projects have been commissioned in the absence of subsidies between 2017 and 2020. Portugal has been subsidy-free for even longer, lifting feed-in-tariffs in 2012. In addition to world-record-breaking auctions, PPAs have become a prerequisite for organisations to efficiently hedge their energy risks from short to long-term.

Pexapark supported EKZ Renewables AG in evaluating different hedging strategies and negotiating the offtake agreement for their Algibicos solar project, which is due to be commissioned by the end of 2020. The final agreement with Axpo was structured in order to allow EKZ Renewables AG to pilot their own electricity revenue management strategy related to the electricity generated by Algibicos, mitigating some key energy risks such as price fluctuations.

In Portugal, Pexapark recently worked with Wirtgen Invest, a German-based, family-owned investment company, to support their efforts to secure a PPA for 97 MW of solar power operational and under construction. Pexapark set up a request for quote (RfQ) process with active off-takers in the Portuguese market, and advised Wirtgen in the negotiation and optimisation of an offer from Holaluz, a Spanish green energy off-taker. Pexapark, Wirtgen Invest and Holaluz were able to materialise and sign the agreement within six weeks of the RfQ.

Elsewhere in Europe, Pexapark also advised on a recent PPA for a 40 MW wind farm in Finland between ABO Wind, a global renewable project developer, and Gasum, a Finnish state-owned gas and power company. As this project is still in construction and is due to come online in 2022, Pexapark provided an in-depth assessment of PPA structure and risks.

These new PPA deals demonstrate the continued resilience of renewable energy markets in the face of the pandemic. Based on data from PexaQuote, Pexapark’s award-winning software for tracking and analysing PPA prices and deals, the rate of new PPAs signed has recovered to pre-pandemic levels as prices increase and the market stabilises. Pexapark’s advisory team is currently involved in 10 processes for over 2100 MW of assets across Europe.

While PPAs are starting to be increasingly recognised by the market as a fundamental step for post-subsidy renewable energy development, monitoring and controlling renewable energy sales and risks across the full lifetime of the project is crucial for organisations to succeed. Pexapark helps companies update their processes via both advisory and software solutions, and builds their capabilities in renewable energy risk management – creating a new ‘operating system’ for the post-subsidy market.

For more news and technical articles from the global renewable industry read our latest issue of Energy Global magazine.

Energy Global’s Summer 2020 issue

The Summer issue of Energy Global provides in-depth technical articles covering technological advancements and future outlooks in the renewables sector, from companies including Sulzer, Power Ledger, JinkoSolar, Trelleborg Applied Technologies, Clir Renewables, and many more. The issue covers a spectrum of clean energies, from wind to hydrogen to solar to biofuels.

Read the article online at: https://www.energyglobal.com/solar/23102020/pexapark-advises-on-ekz-renewables-and-axpo-solar-ppa/