Pexapark’s In-House Academy helps RWE validate their PPA strategy
RWE renewables is a leading German energy company with a strong focus on renewables, owning and operating 3.6 GW of wind, solar, and hydropower. The company plans to double the capacity of its clean energy portfolio in Europe, with 7.7 GW of assets under construction or in the development pipeline.
As of 2019, RWE’s renewables portfolio includes:
- 3.6 GW in operation
- 6.3 GW in development pipeline
- 1.4 GW under construction
- 770 MW seeking PPAs
As part of its strategy to sustain growth in the post subsidy renewables market, RWE regularly structures and signs PPAs to manage its exposure to merchant risk. To maintain its leading position and expand further, the company must continuously assess and build its in-house expertise in PPA structuring, pricing and financial risk management.
RWE needed an independent perspective to validate its understanding of best practice for PPAs and a way to quickly bring each of its departments up to speed.
The In-House Academy
Pexapark’s PPA Academy distils two decades of energy trading expertise, and experience supporting over 50 renewable energy PPAs, into a one-day programme. The Academy, which has educated more than 450 energy professionals, can be delivered online, in-person and as a bespoke in-house session.
In January 2020, Pexapark worked directly with RWE’s PPA team lead to develop a tailored In-House Academy programme covering:
- Energy risk management frameworks;
- How PPA structures act as a tool to allocate risks;
- PPAs as a procurement tool for corporations, and example corporate PPA structures
- Managing credit risk
- Quantitative simulations of pricing and risk
Throughout the full-day event, attendees were given a detailed overview of how different PPA Structures support allocation and management of financial risks. Attendees benefitted from strong visual aids and hands-on exercises to build their understanding of complex themes.
The Academy ultimately allowed RWE’s team to align its internal financial risk management strategy with market-wide best practice. This leaves the company well-placed to expand its reach into the PPA market.
Roland Kok, Head of Global Services – PPA & Structured Origination at RWE Renewables:
“As our business grows and evolves, we want to ensure that our modelling and risk management strategies are aligned with industry best practice across our team. The In-House Academy from Pexapark allowed us insight into PPAs and strategies for managing merchant risk across European markets. This workshop gave us full confidence in our methods for evaluating and managing risk as we bring more projects onto the market.”