A Renewable PPA Pricing Tool From Pexapark

Zurich-based renewable energy company Pexapark has announced that it is launching a pioneering feature that accounts for a site and technology-specific production to its renewable energy PPA (power purchase agreement) pricing system named ‘PexaQuote’.

The firm claims that PexaQuote currently supports developers and investors operating over 250GW of global renewable energy investments as the industry pushes further into a subsidy-free future. The renewable energy PPA market is expected to surpass 10 GW this year, with over 5.5GW already signed across 68 deals since the start of 2021. Notably, according to Pexapark’s “PPA Times” report, this speedy growth is being driven by the entry of large corporate buyers, which are setting new records for the volume of PPAs across Europe.

Nevertheless, multiple renewable energy companies must now deal with increased analytics demands to master the complexity of PPAs, and thereby reduce structuring and execution losses amidst heavy competition for limited liquidity. Renewable energy companies have also continued to battle against opacity around price data in the market, limiting their ability to accurately value potential PPAs for new assets. Among others, site- and technology-specific characteristics are key price determinants when assessing the correct market value in any PPA transaction.

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As per the company’s claims, PexaQuote is now the first PPA pricing tool to account for and adjust prices in line with all associated factors such as a given site’s local weather properties and production profile based on the type of renewable energy technology taken under PPA structure.

Interestingly, users with access to this add-on can drop a pin on a European map and quickly specify all parameters to calculate fair PPA pricing for their specific wind turbine or solar PV panel. Pricing for a given structure is calculated in under a minute based on the location’s meteorological data, according to Pexapark.

Speaking of their new technology, the CEO and co-founder of Pexapark, Luca Pedretti commented, “We’ve seen time and time again how much top-line value can be lost if the PPA is not properly priced. With the new locational pricing features of PexaQuote, project developers, investors, and producers can finally analyze all relevant factors for a given project’s PPA by themselves.”

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“Our technology allows them to accurately identify the site-specific, market-based value of renewable electricity production and is a powerful tool for fine-tuning start date, tenor, structure, and contract volumes in PPA negotiations. This new feature further supports developers during PPA negotiation off the back of Pexapark’s award-winning pricing system, PexaQuote,” Luca further added.