We at Pexapark are proud of what we have achieved in the renewable energy market in the relatively short time. We believe in our software and its ability to enable clients to better manage their renewable energy-related contracts and investments.
In the spirit of continuous improvement, we reached out to Taiga Mistral, one of our very first clients, for a Q&A session on their experience thus far with our PPA software. For us, it was a great opportunity to touch base with a client we respect immensely.
This short and sweet Q&A went like this:
What made Taiga Mistral take a chance with a young company such as Pexapark?
Why did Taiga Mistral decide to become one of Pexapark's first PPA software customers?
It’s simple. When we started a discussion with Pexapark, there was no other company offering a similar solution or value proposition. We quickly realised that Pexapark's PPA Software could provide us with far better insights into our energy sales and PPAs, as well as real-time access to prices.
And it’s not just about having better information regarding market prices. It’s also about real commercial insights into our assets - thanks to the PPA software. We do this by comparing between different PPAs and saving time on simple PPA tasks. This allows us at Taiga Mistral to focus on more important, strategic challenges that we face.
What are the biggest challenges regarding implementing and maintaining PPAs?
How important are PPAs in Taiga Mistral's daily business activities?
In hindsight, we now know that the period with feed-in-tariffs was a very compatible solution as it allowed us to focus on generating electricity. The rise of PPAs ushered in a host of changes and specific challenges for our industry. First, our organisation had to build up new knowledge and gain the ability to optimally choose between the many different options. After all, there was only one single PPA product, namely the fixed-price feed-in tariff. Now there’s a diverse range of different PPA product options, legal requirements and counter-parties.
Second, these diverse options demand a sound understanding of underlying risks that may prevail, such as profile, cannibalisation and balancing costs. Beyond analytics, there are also the many new recurring tasks involved such as invoicing, counter-party checks and the annual renewals that need to be taken into due account.
What factors to consider when choosing a new enterprise-wide software such as our PPA software?
There are a number of important factors that we consider. Firstly, having a specialised counter-party is key for us. We are a small company of 20 people with a financial focus. Therefore, we depend on specialised and competitive service firms that can cater to our needs, such as Pexapark. Secondly, it is not cost- or time-effective for us to spend a lot of time on product customisation.
Thirdly, we simply cannot afford the risk of a project failing. This is a very important consideration since we as a small company have special requirements unique to our specific setup. These requirements cannot be met by very large software solutions. Last but not least, we don’t just ‘buy software’ but, rather, the competence behind the software. Pexapark’s PPA software deals specifically with energy risk and energy sales and we know that if we call you, your team will understand the details of our PPAs.
What are challenges and opportunities for Taiga Mistral's investment going into the future?
We see a fundamental change not only in the rise of PPA projects, but also in the entire public perception of the renewable energy industry. There is real urgency among policy-makers and citizens that the transition to renewable energy must accelerate.
Taiga Mistral is well-poised to capitalise on this trend as we have built a precise competence in this market. This is thanks to our exposure to PPA markets for some years now. Our investments include involvement in renewable projects in Poland and Spain which have since become well-established PPA markets. We would like to leverage this competency advantage to third parties. And we are well-placed to do so with the help of Pexapark’s PPA software.