Pexapark AG, a Swiss renewable enterprise software company, announced it has launched PexaQuote, a new SaaS software tool enabling users to access prices and quotes for standardized long-term solar and wind power purchase agreement (PPA) products on a daily basis with the aim to maximize the return of renewable energy investments.
Power purchase agreements, or PPAs, enable investment in renewables in unsubsidised markets by providing revenue certainty to investors and lenders. Yet, such agreements are also complex in their structure and pricing. Asset owners, buyers, and lenders need to constantly track and assess energy risks, valuation, and negotiation issues to protect a PPA’s value in volatile energy markets.
Covering on-shore wind, offshore wind and solar, different commercial structures and tenors for all the major PPA markets in Europe PexaQuote is designed to help investors, developers, utilities, traders, corporate offtakers, lenders and advisors negotiate better PPA deals.
PexaQuote SaaS software tool, which is being used in some of Bloomberg’s energy reports, offers greater price transparency and a clearer market overview by reporting on the latest price transactions and tracking prices over time.
PexaQuote main features
- Customised PPA pricing. Customers can request customised PPA pricing based on a specific renewable energy asset in a specific location.To help determine fair value pricing, the system will then ask for further information about the asset.
- Request for prices anonymously. PexaQuote has partnerships with some large offtakers such as Engie, Vattenfall, RWE and Axpo, but also local players such as Holaluz and DXT Commodities. A seller of an asset looking for offtaker quotes can submit an anonymous pricing request. The seller will then be connected to offtakers who are interested to provide quotes for specific projects.
- Get a snapshot of the future. PexaQuote’s Forward Curve function helps predict tradable quantities of energy for the future.
- Keep tabs on the latest news with PPA Tracker. Pexapark’s team of analysts track all PPAs that have been published in the market. With PPA Tracker, users receive timely updates on new PPA announcements.
PexaQuote’s fair value calculations are determined by the following variables:
- Geography. Users can expect to get fair value calculations of PPA pricing across different countries in Europe. The current list of countries include: Spain, Italy, Denmark, Finland, Sweden, Germany, Great Britain, Poland, Portugal and France.
- Type of technology. PexaQuote takes these different technologies into consideration for its calculations covering solar, onshore wind, or offshore wind energy.
- Different tenors. The longer the tenor of a contract, the higher the risks involved as prices will change over the years. PexaQuote helps mitigate these risks by providing fair value on different PPA tenors. The user can also specify the start date of a contract to get a more accurate PPA price based on market conditions at that point in time.
- Different PPA structures. The type of PPA structure choosen will impact how the energy risks are distributed among different stakeholders. As these risks have different costs, this will change the fair value calculations and the price of the PPA. At a glance, they are pay-as-produced, annual baseload and monthly baseload.
For more information visit Pexapark website.
Source: Press Release by Pexapark.