In-house article

What could be helpful tools to run better PPA negotiations

Let’s recap on the last 12 intense months of PPA negotiations on more than 25 renewable PPAs across Europe that we did with Pexapark

Which frameworks, checklists, and tools were helpful and what would we want to take ahead for PPA negotiations support in an even more systematic and structured way?

What were the most frequently asked for deliverables and jobs-to-be-done during a PPA negotiation we faced, here put down in an unstructured manner:

  • Maintaining a timeline
  • Organizing conference calls
  • Leading the negotiation
  • Aligning positions and interests among various stakeholders
  • Creating Meeting Agendas
  • Comparison of different PPA structures and offers
  • Procure new quotes and offers
  • Providing commercial input to Legal Teams to mark up the PPA
  • Providing information on the project and SPV to the Offtaker
  • Maintaining an Open Issue List
  • Determining the optimal hedge volume and profile
  • Sizing of Guarantees level
  • Verifying settlements with dummy data in excel
  • Putting a price tag on all risks implied in a PPA
  • Setting the right start date for the fixed price period
  • Defining a price-fixing mechanism

These jobs could be grouped in the following categories

  • Process Management
  • Document Management
  • Energy Risk Pricing & Analytics
  • PPA Strategy & Tactics

What are the biggest hassles in PPA negotiations?

  • Bad quality conference calls
  • Meetings and Conference Calls without and/or little preparation
  • Zillions of Emails for discussion, sharing of documents, arranging of calls and more
  • Unclear commercial interests of involved parties
  • Late stage surprises

How could software help?

Instead of emails, one online suite would give all project stakeholders access to the timeline, project documents, and tools. Compared to online

Key documents maintained online would be:

  • PPA Comparison Table
  • Open Issues List
  • Project documents
  • Next Meeting Agenda
  • NPV break down of newest offer
  • Milestones until COD
  • Team list

The software can only give structure to the process but will not help if the PPA Lead does manage the process actively.

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