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Chart of the Week

2020

The real deal: Recent activity in the PPA market

Lee Drummee Analyst

In this 'Chart of the week', we outline the latest research from our PPA Market Deals Trackers which we provide as part of our Renewables PPA Market Share and Flexible Asset PPA Market Report. Through this analysis we track and record all public deals relating to the PPA market, including PPA deals, new entry into the market from offtakers and mergers or acquisitions of assets and offtaker portfolios. Through this tracking we have observed a number of interesting trends for both markets.  Starting with the emerging flexible asset PPA market, we record that since August 2019 530.6MW of optimisation agreements have been announced. 197.6MW of this capacity, from seven individual agreements and seven individual offtakers, has been announced since the beginning of April 2020. This compares against a total market for third-party or what we term “contestable” flexile asset PPAs of just over 4.0GW. The range of offtakers also winning contracts also highlights the emerging breadth of competition in the space. Five of the seven new agreements were for battery storage assets, accounting for 171MW of capacity, while the remaining two deals were for 26.6MW of gas engine capacity. The largest of these deals in terms of capacity was between EDF and Zenobe. Under the agreement EDF will trade and optimise a 59MW portfolio of Zenobe batteries consisting of assets in Claredown, Aylesford and Kings Barn. The second biggest deal will see Flexitricity trade Gresham House’s 50MW Thurcroft battery in the wholesale and in balancing services, as ...

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