As the renewable energy sector continues to grow, an increasing number of investors are eager to embark on new projects involving the construction of wind or solar farms. Power Purchase Agreements (PPAs) have become a widely adopted instrument to ensure a return on investment for such projects. A PPA is a complex contractual agreement structured to facilitate the sale of power at a predefined price or pricing formula and that outlines the amount, timeframes, penalties, and other delivery conditions. PPAs are not limited to wind and solar power production but are also used for various other production types, including hydro or nuclear. However, it was the wind and solar investment boom that gave birth to the prominence of PPAs. PPAs are structural contracts spanning typically from one year to up to 20 years. For investors and renewable power producers, especially those who are not experts in renewable energy markets, it is challenging to calculate a fair price, quantify all associated risks, and develop effective hedging strategies for such contracts. This is where Pexapark comes in. Pexapark is dedicated to supporting the growth of renewables and provides customers with PPA reference pricing in addition to software tools for PPA deal analysis… continue reading
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