RWE Renewables Uses PexaQuote To Strengthen Its PPA Insights

Pexapark, a provider of software and advisory services for post-subsidy renewable energy sales, has announced that RWE Renewables, one of the world’s leading renewable energy companies with a development pipeline of over 20 GW, has joined its award-winning power purchase agreement (PPA) pricing platform, PexaQuote.

PexaQuote models transaction prices for renewable PPAs across different markets in Europe and has recently been updated with new functionalities to help its growing user base tailor pricing to different markets, technologies and contract specifics.

As the renewables industry transitions toward a post-subsidy market, developers and power producers are exploring PPAs in order to manage transactional risks and secure financing for projects. However, the market is still in its infancy, and many companies, faced with a variety of structurally different PPA hedging strategies, struggle to evaluate which would be the optimal choice for a given project. This slows down individual deals and can prevent accurate benchmarking of pricing and merchant risk.

Roland Kok, PPAs & Structured Origination at RWE Renewables, said: “As the market shifts and reacts to wider economic trends, we want to keep our PPA price modelling for renewables as precise and up-to-date as possible.

“As a global player, we have our own models and tools in place to calculate and deliver the best PPA offers for our customers. The outside-in perspective is important for us as we always want to learn and improve; also this is important for our customers. A key feature of PexaQuote for us is the dynamic reporting of renewable power pricing on the market, which allows us to validate the accuracy of our PPA pricing models.”

RWE Renewables joins a quickly growing number of renewable energy investors and producers using PexaQuote. As of this year, renewable energy project developers and energy producers comprise nearly 40% of PexaQuote’s subscriber base, while finance partners and investors make up over 15%.

In order to continue serving the evolving needs of this market, Pexapark has recently added new functionalities to PexaQuote to allow users to adjust PPA pricing based on deal-specific factors, including off-taker credit rating and liquidity, and technology.

Luca Pedretti, co-founder and Chief Operating Officer, Pexapark said: “The recent Covid-19 challenges experienced by the renewable energy industry have highlighted emerging structural challenges the PPA market faces – and chief among these is opacity around pricing and risk.

“We are proud to have RWE Renewables among our growing customer base. We are convinced that our solution provides insights required to appropriately respond to the demands of the increasing PPA market. With faster, better PPAs, more renewable energy projects can be financed and built at the rate needed to decarbonise global energy supply.”