PPA Transaction

PPA TRANSACTION AND ANALYTICS

We accompany you through the entire PPA process providing risk analytics, PPA pricing, structuring, negotiations and execution.

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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
TARIFF
OPEN

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.

HOW WE HELP
  • 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
WHAT WE DO
  • 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.
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OUR CLIENTS

OUR CLIENTS OVER 4,500MW PPA TRANSACTIONS (40+ MANDATES)
  • PPA MANDATES LAST 12 MONTHS
  • COVERED MARKETS
SOME OF OUR CLIENTS
Aip
Fontavis
Encavis
Taaleri
EKZ

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
  • 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
  • PEXACURVES
    • Daily updated long-term price forward curves based on market prices and quotes
    • Monthly update of fair value of standard PPA structures
  • MANDATES
    • PPA transaction management from initial strategy to execution
    • Sourcing of off-takers
    • Structuring, negotiation and execution of transaction
  • NEGOTIATION SUPPORT
    • Ad-hoc tactical and strategic advice for on-going negotiations
    • Sizing of optimal credit securities amounts
    • Structing and optimization of contracts
  • 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
HOW CAN WE HELP YOU?
TESTIMONIALS

"Pexapark's extensive experience in PPA transactions have been key in helping us expand and manage our renewable investments in open markets. Their highly structured approach to energy risk management as well as their collaborative work style has been a tremendous asset to our teams."

Dr. Dierk Paskert CEO ENCAVIS

"The team at Pexapark has a deep understanding of the PPA market, which enables them to present and discuss the risks related to PPAs in a structured manner. The framework presented in the PPA Academy is useful to offtakers, developers, investors, financiers and advisors working with renewable asset and management."

Kari Tikkanen TRANSACTION MANAGER AT OX2

"We operate wind farms in Poland and need to sell our electricity on the open market. Pexapark helped us to navigate through a variety of available PPA options, and their PPA analysis was conclusive and helped us greatly in the process. Our decision to become part of the platform proves a lot of value for us!"

Bartłomiej Ziębiński PARTNER ENERN PRIVATE EQUITY