Pexapark, a provider of software and advisory services for clean energy Power Purchase Agreements (PPA) recently announced it had launched a free version of its PexaQuote software. PexaQuote is a comprehensive solution that systemizes quotes, builds forward curves, and analyzes prices to create certainty for developers, utilities, and corporations looking to close PPA deals.
Pexapark now offers these users free access to essential tools including PexaQuote’s price indices, deal tracker, and quote service.
As subsidies across Europe are lifted, PPAs are increasingly important for developers as a strategy to manage risk in order to obtain financial security for a renewable energy project. By negotiating a PPA agreement with an agreed offtaker who will guarantee to take some, or all, of the power output at a fixed price and tenor, project owners are able to secure borrowing and investment to complete the development process. Pricing proficiency is therefore of the essence for project owners to conduct an efficient negotiation process.
And, with an increasing number of private institutions joining utilities in committing to obtaining power sourced from clean technologies, buyers need a mechanism by which to navigate some of the complexity of pricing and contract negotiation. This is critical during a procurement process that can be unfamiliar and where a significant investment in time and staffing may be required to collect and analyze market data to determine the best price and structure for a PPA.
Pexapark’s software, data, and advisory services have been developed to create certainty for buyers and sellers as clean energy transitions away from subsidies and toward an open market.
Since 2019, the business has used insights from its software and database to support more than 50 PPA deals struck in Europe. Pexapark developed PexaQuote in 2019 to analyze power price data and provide a quote based on real-time energy valuation and the specifics of a given project.
PexaQuote’s free edition includes price indices by market and a PPA deal tracker, which records deals closed in the EU as and when they are disclosed. The software allows users to analyze the volume of deals across different technologies and countries. In addition to providing insight into pricing across the market, the free version also includes a new feature wherein the user is able to request a quote for a given PPA structure. If any sell side parties are interested, the software automatically matches them to the user.
“The future of renewable energy is subsidy-free,” said Luca Pedretti, Pexapark’s COO. “However, given the renewable PPA market is still relatively new, many businesses interested in either selling or buying clean energy do not have access to the data needed to determine price or structure. And even when they have access to the data, it can take weeks for a team to analyze it and come to a final quote. PexaQuote allows both sides of the PPA transaction to identify the best structure and price for a given deal in a matter of seconds.”
“By providing a free level of access to our proprietary software, we’re enabling the wider market to be able to take advantage of data availability that has been critical to driving European PPAs to date,” Pedretti said. “This is a core part of our objective to drive forward the transition in clean energy to a merchant market.”
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