In the post feed-in tariff world, more risk is being pushed to the investor side
European power trading innovation: The rise of PPAs
The end of guaranteed prices for renewables generation is sparking a revolution in risk management
A power-purchase agreement (PPA) sounds inherently very simple. One party agrees to sell power in certain volumes over a certain period for a certain price, the other to buy. But a renewable power asset is decidedly less simple, not producing a predictable volume of energy. Nor is the future price of electricity certain, or even observable beyond the liquid traded market. With PPAs the preferred method of underpinning the investment case in renewables assets, it is not surprising, Michael Waldner, CEO of software firm Pexapark tells Petroleum Economist, that understanding their price risk has become so important. Pexapark CEO Michael Wald
Also in this section
21 May 2025
Integrated refining and petrochemicals company highlights strategic flexibility amid trade war risks and long-term planning to futureproof business, says CEO Prabh Das
21 May 2025
OPEC and IEA split on oil demand outlook and even diverge on supply risks, with huge implications for market sentiment
20 May 2025
Petroleum Economist is proud to be an official media partner for the 9th OPEC International Seminar in Vienna
20 May 2025
Mediterranean-focused gas producer looks to replicate Israel success story and is hunting projects across the continent, with particular interest in West Africa
