Market Shift

FITs (Feed-in Tarif) are government contracts that act as a guaranteed purchase agreement of electricity fixed over a period of 15-25 years. A temporary subsidy designed to encourage investments into renewable energy, which dissipated as the market grew. Today renewables are traded in the open market and have become investments that are significantly more complex, technical and volatile.

TARIFF MARKET

  • Fixed MWh Price
  • Low volatility
  • High Margins
  • Limited Competition
  • Low Counterparty Risk

Open Market

  • Fluctuating MWh Prices
  • Significant Volatility
  • Tighter Margins
  • Increased Competition
  • Counterparty Risk

MANAGING RISK

In today’s post-tariff market the key to sustainable revenue is risk management.

STRATEGY

The first step of our process is to establish a clear investment profile, define the preferred risk appetite and incorporate all internal and external requirements that would be relevant to our client’s strategy.

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RISK ANALYSIS

Commercial, market and regulatory risks are evaluated through extensive qualitative and quantitative analysis, which include Monte Carlo simulations, cash flow analysis’ and adjustments for energy risks and expected costs.

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STRUCTURING

In order to find the optimal offtaker, we help our clients structure contract terms, valuate cash flows, analyse risks, negotiate PPA terms and finalise all key documents (term sheet, credit facilities and master agreements).

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RISK MANAGEMENT

Upon execution of a PPA we continuously monitor all energy revenues and risks, help hedging any remaining exposure, manage market or commercial risks and provide our clients with market intelligence and access to our portfolio monitoring tool.

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PPA ADVISORS

We help renewable energy investors take control of their energy revenues and risks.

As industry experts, we accompany our clients through the entire PPA process (risk analytics, valuation, deal structuring, term negotiations, execution) and offer them an all-in-one solution to take control of the risks posed by the post-tariff renewable energy markets.