Amid energy market volatility, combining advanced meteorological data with PPA pricing technology is essential for evaluating new investment opportunities and identifying the best locations and PPA structures for new renewables assets
Zurich, 11th November 2021 – Pexapark, a provider of software and advisory services for post-subsidy renewable energy sales, has announced a new partnership with ConWX, a provider of mission-critical power forecasting services for global energy providers, to enable asset developers, owners and investors to more effectively site and value new renewable energy projects.
The agreement will see ConWX make its power and weather modelling data available to Pexapark users via the PexaQuote Price Reference platform. Combining these industry-leading data streams will help developers, producers and investors to swiftly quantify the value of new wind and solar asset investment opportunities.
They will be able to identify with pinpoint accuracy the Power Purchase Agreement (PPA) prices a project can achieve based on location and technology type, allowing fairer pricing for the sale of assets. The partnership also introduces the capability to optimise PPA structures based on local conditions.
Significant volatility in power pricing over the past 12 months has led to scrutiny on the renewables sector and its ability to deliver a smooth energy transition in Europe. In particular, low wind speeds have recently been singled out by industry opponents as a factor exacerbating high power prices off the back of natural gas shortages.
Pexapark’s market pricing analysis reveals that high production yields are not the only basis for choosing an optimal site location. The growth of renewables introduces a cannibalisation effect that can reduce potential prices. This means that sites that may have an identical wind or solar yield can perform very differently from a commercial perspective.
This wide variation highlights why it is important for developers and asset owners to understand how local weather conditions correlate with market pricing and cannibalization – and, in turn, influence the true long-term value of a renewable energy project. By using meteorological and pricing data to identify the very best locations and optimal PPA structures, stakeholders can manage these risks and maximise the revenue potential of their new projects.
“While supply and demand dynamics mean there is no shortage of capital to be invested into high quality renewable energy projects and pipelines, there will inevitably be a market response to recent months of unprecedented volatility when it comes to asset valuations,” said Dr. Werner Trabesinger, Head of Quantitative Products, Pexapark.
“To secure fair prices for PPAs, or a fair valuation at sale, asset developers and owners need certainty that they have fully accounted for the variables that impact long-term performance and profitability – namely the available resource and the market price. We’ve joined forces with ConWX, the leading provider of meteo data, to make PexaQuote the market’s most accurate tool for evaluating new assets and optimising potential revenue.”
Ewelina Reszke Hansen, Head of Sales and Business Development, ConWX, added: “Location-specific meteorological and pricing data are both prerequisites for successful project development and operation in today’s market. As recent events show, resource availability and pricing are inextricably linked and cannot be looked at in isolation. Those who can most effectively integrate their essential data will be best placed to mitigate risks and secure accurate valuations for their projects.”
Pexapark and ConWX will be hosting a webinar on November 16th entitled: How to accurately value and optimise new renewable asset opportunities in open energy markets . The webinar will discuss how wind and solar projects can be more accurately valued and assessed by combing proposed PPA structures with pricing data, cannibalisation risks and meteorological data. To sign up, please use the following link: https://us02web.zoom.us/webinar/register/WN_bHAokqo4QvmQjMPO_Hx8-w
Based in Zurich and founded in 2017 by Michael Waldner, Luca Pedretti and Florian Müller, Pexapark is a rapidly growing, award-winning renewable enterprise software company.
At Pexapark, we are passionate about the global growth of green energy to create a more sustainable world. Our vision is to become the Operating System of choice for the renewables industry to buy, sell, and manage energy in post-subsidy markets, by creating transparency, facilitating new transactions, and providing the best software foundation for renewable energy sales and risk management.
With more than 12,000 MW of renewable PPA transactions supported, Pexapark has become the one-stop source for software solutions and advisory services in the fastest growing part of the renewable energy market.
ConWX is a leading global forecasting provider with more than 15 years of experience in advanced weather and energy forecasting. Our mission is to help our customers optimize performance and grow their businesses with the highest accuracy and quality in power and weather forecasting. We do not believe in standard solutions; instead, we believe that through close collaboration with our business partners, we are able to find the best solution to their needs and situation
To date, we have forecasted more than 50,000 facilities in +50 countries with an installed capacity of +140 GW of wind and solar.
Our core expertise includes:
• Wind power forecasts
• Solar power forecasts
• Portfolio Analysis – simulating hourly production from wind & PV assets
• Metocean forecasts and hindcast, incl. waiting on weather analysis
• Historical weather data
• Numerical Weather Prediction Data
• Long-term weather outlook