Energy Global featured our PPA survey research which shows the power purchase agreement (PPA) market for renewable assets continues to be highly competitive. In fact, the PPA market for renewable generation assets has seen a significant rise in the £/MWh value achieved by generators, particularly in the short-term market (deals 1 – 3 years in length).
Discussing the survey Lee Drummee, Analyst at Cornwall Insight explained that more parties are entering the market. In particular, smaller green suppliers looking to back renewable energy supply tariffs against green power purchased directly from generators, instead of or alongside Renewable Energy Guarantees of Origins (REGOs).
Increased interest in corporate PPAs continues to be noted, but a gap in expectations between offtakers and corporates remains, according to our survey, and slim price benefits create difficult negotiations.Lee Drummee