PPA TRANSACTION AND ANALYTICS
We accompany you through the entire PPA process providing risk analytics, PPA pricing, structuring, negotiations and execution.
MARKET SHIFT
FITs (Feed-in Tariff) are government contracts that act as a guaranteed purchase agreement of electricity fixed over a period of 15-25 years. They are a temporary subsidy designed to encourage investments into renewable energy, which dissipated as the market grew. Today renewables are traded on the open market and have become investments that are significantly more complex, technical and volatile.
TARIFF
MARKET- Fixed Income
- Technical Risk Management
- One-off
OPEN
MARKET- Uncertain Income
- Merchant Risk Management
- Continuous
WHY PEXAPARK
Setting up a PPA transaction is like a complex origination deal in investment banking. It requires a particular expertise, relies on a very strong network in the industry, a profound understanding of selling power over long time horizons, a shared culture and language with the market’s major off-takers and of course outstanding negotiation skills. As transaction managers to some of the major renewable energy producers in Europe, we help companies overcome these challenges by securing the best possible terms for their PPAs.
- We maintain a state-of-the art proprietary quantitative model to ensure consistent power prices and renewable production modelling
- We model forward price curves daily to continuously understand the fair value of PPA transactions and open positions
- We apply our years of experience and industry knowledge in energy trading and origination to the benefit of our clients in PPA negotiations
- We make different PPA structure comparable in a quantitative manner;
- We perform fair value calculations and pricing of all relevant commercial energy risks;
- We optimize hedge profiles;
- We determine cash needs under different PPA and price structures;
- We support and manage the PPA process from initial strategy to execution;
- We review and structure PPA transactions.
OUR CLIENTS
- PPA MANDATES LAST 24 MONTHS
- COVERED MARKETS
OUR PPA TRANSACTION SERVICES
IN TODAY’S POST-TARIFF MARKET THE KEY TO SUSTAINABLE REVENUE IS RISK MANAGEMENT.-
PEXAQUANT
- Calculate fair values in our proprietary quantitative model
- Compare different PPA structures in a quantitative manner
- Optimize hedge profile and determine cash requirements
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PPA REVIEW
- Conduct a commercial review of off-take terms and conditions
- Assess contracts structures
- Check of risk allocation, settlement terms and commercially relevant clauses
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PEXACURVES
- Daily updated long-term price forward curves based on market prices and quotes
- Monthly update of fair value of standard PPA structures
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MANDATES
- PPA transaction management from initial strategy to execution
- Sourcing of off-takers
- Structuring, negotiation and execution of transaction
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NEGOTIATION SUPPORT
- Ad-hoc tactical and strategic advice for on-going negotiations
- Sizing of optimal credit securities amounts
- Structing and optimization of contracts
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RFP MANAGEMENT
- Design of RfPs with a focus on determination of an optimal, standard product in line with market needs
- Management of the RfP process