Power Purchase Agreement
In the dynamic renewable energy market, Power Purchase Agreements (PPAs) are essential for long-term sustainability and financial predictability. PPAs provide asset owners with a steady revenue stream while enabling buyers to source green power at a fixed price, mitigating risks and enhancing price certainty over the long term.
As the renewable energy sector evolves, PPAs are crucial in securing investments and ensuring sustainability for consumers. The growing market for PPAs increases the need to understand the associated drivers, risk factors, and uncertainties.
Our cutting-edge analytics and asset-specific forecasts allow for a nuanced and in-depth fair value assessment. Veyt's PPA modelling environment provides transparency and clarity in the market.
PPA product offering that
- determines fair value PPA prices across locations, technologies, and contract structures on an asset-specific basis
- provides a detailed prediction of cost components in PPA pricing, including baseload electricity price, capture cost, imbalance costs and GO prices
- covers various contract structures such as pay-as-produced, pay-as-forecasted, annual baseload and monthly baseload as well as indexed PPAs based on inflation measures
- facilitates comparison of different locations and assets, analysis of cost components, and distribution of costs between counterparties
- benchmarks expected future developments against historic market trends
- Allows for a detailed assessment of risk components such as weather and volume risk
Simplifying the PPA process through
- dynamic market-based valuation of PPAs for different technologies, locations and contract structures
- break-down of key terminology and technical aspects involved in entering a PPA for the first time
- decision-making support regarding technology type, location and pricing strategies
- enhancing transparency with granular data on market trends and price developments for all relevant pricing components at high geographical resolution
- clear overview of the PPA landscape through deal flows and a comprehensive transaction database
Features covering
- historical analytics and forecasts for PPA prices and associated markets, analytical granularity at country, TSO and asset levels
- heatmaps for comparing relative performance and detailed insights into various PPA pricing components
Comprehensive PPA valuation tools
Offering a robust toolkit to determine fair value PPA prices, integrating factors such as location, technology, contract structures and tenures for a nuanced analysis
Advanced analytics for PPA price components
Delivering insights into crucial components of PPA pricing, including baseload electricity prices, capture costs, imbalance costs, and the value of Guarantees of Origin (GOs), enabling precise financial planning and strategy
Granular market insights and trends
Providing detailed market outlooks and forecasts that encompass not only renewable energy trends but also the intricate dynamics of PPA volumes and technological shifts, aiding stakeholders in navigating future market landscapes
Streamlined decision-making process
Simplifying the PPA engagement process with comprehensive analytics on project status, technology selection, and pricing strategies, fostering transparency and making renewable energy procurement more accessible
Predictive modelling and risk analysis
Utilising state-of-the-art predictive models to analyse future market developments, capture ratios, and volume risks, offering stakeholders foresight into the evolving PPA market
A world-class team of analysts
At Veyt, our expert analysts, renowned in the industry, provide trusted guidance, reliable insights, and exceptional support for navigating the renewable energy market effectively