Pexapark, a provider of software and advisory services for post-subsidy renewable energy sales, recently announced it has added a new pioneering feature that accounts for site- and technology-specific production to its renewable energy pricing system, PexaQuote.
PexaQuote supports developers and investors managing more than 250 GW of global renewable energy investments as the industry pushes further into a subsidy-free future.
The renewable energy PPA market is expected to exceed 10 GW this year, with more than 5.5 GW already signed across 68 deals since the start of 2021. According to Pexapark’s “PPA Times” report, this rapid growth is being driven by the entry of large corporate buyers, which are setting new records for volume of PPAs across Europe.
However, as the market is becoming more mature and offerings more structured, many renewable energy companies must now deal with increased analytics demands to master the complexity of PPAs, and thereby reduce structuring and execution losses amidst heavy competition for limited liquidity. Renewable energy companies have also continued to battle against opacity around price data in the market, limiting their ability to accurately value potential PPAs for new assets. Among others, site- and technology-specific characteristics are key price determinants when assessing the correct market value in any PPA transaction.
PexaQuote is now the first PPA pricing tool to account for and adjust prices in line with all relevant factors such as a given site’s local weather properties and production profile based on type of renewable energy technology in line with the chosen PPA structure.
Users with access to this add-on are able to drop a pin on a European map and quickly specify all parameters to calculate fair PPA pricing for their specific wind turbine or PV panel. Pricing for a given structure is calculated in under a minute based on the location’s meteorological data.
ABO Wind, a leading renewable energy developer, was one of the first locational pricing users.
“Locational pricing is of interest to us from the first stage of project development, because it gives us a really good understanding of what to expect from a potential PPA for a project in a particular location, and helps us work out project sizes and timings,” said Ryan Bernhard, head of Energy Sales and Markets, ABO Wind. “It’s also helpful when we talk to investors who want to know if a project may be better than the market average. Locational pricing gives us an edge on understanding the value of the location.”
“We’ve seen time and time again how much top-line value can be lost if the PPA is not properly priced,” said Luca Pedretti, co-founder and chief operating officer, Pexapark. “With the new locational pricing features of PexaQuote, project developers, investors, and producers can finally analyze all relevant factors for a given project’s PPA by themselves.”
“Our technology allows them to accurately identify the site-specific, market-based value of renewable electricity production and is a powerful tool for fine-tuning start date, tenor, structure, and contract volumes in PPA negotiations,” Pedretti said. “This new feature further supports developers during PPA negotiation off the back of Pexapark’s award-winning pricing system, PexaQuote.”
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