91. The radical transformations of the PPA market - Feb23

Redefining Energy

Power Purchase Agreements (PPAs) are private contracts between a producer of renewable energy and consumers. The PPA was developing consistently, mainly driven by Utilities. Then 2022 arrived and we witnessed an unprecedented volatility in PPA markets in Europe.
What were the consequences of that turmoil on the PPA markets in terms of prices, tenures, counterparties? Did PPA provide good hedges to sellers and buyers?
We have brought in Luca Pedretti, the COO & Co-Founder of Pexapark to dive into the intricacies of the PPA market. Pexapark is the leading analytic platform of PPAs.
How has the market evolved in recent months and where is it heading? What new thinking and innovative approaches in terms of risk management are bringing solutions and give rise to new opportunities? We also talk about the detrimental haphazard proposals of market reforms by regulators, their lack of trust in the private sector, and their itching attempts to over-regulate with top down one-size-fits-all decisions, soviet style.
But hope is around the corner, and the PPA market will evolve and thrive, but it will be a different market, more on a portfolio basis than on an asset basis, with different tenures and risk management systems.
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Pexapark is a 5-year young, rapidly growing company of 100 enthusiasts providing renewable energy management software and PPA transaction services to investors so that they can independently price, analyse, manage, and transact their production on power markets. Pexapark enabled so far +20 GW of PPAs and its software is run for 1’000s of assets.
Also, if you like more audio content on commodities and energy, check the HC Insider Podcast https://www.linkedin.com/company/hcgroup-global/
Finally, we thank our partner Aquila Capital, who make this show possible!