Resonance Asset Management is an asset management firm focusing on real asset investments with attractive risk/return characteristics. In the renewable energy space, Resonance manages funds consisting of small and medium-sized wind farms across England, Scotland and Wales.
In June 2022, Resonance used the Renewable Exchange platform to execute PPAs for 21 wind sites across two portfolio tenders.
Resonance first tendered a portfolio of sites through the Renewable Exchange platform in 2021, when power prices in the UK started to rise. They continued to follow the developments in PPA prices closely and decided to tender again in June 2022; this time looking at PPAs for 21 wind sites under management, split into 2 portfolio tenders.
These 2 tenders were launched and completed in June 2022. The first one included 7 sites with 5 different contract renewal dates.
The suite of tools available through the Renewable Exchange platform allowed for a simple and quick process of securing the PPAs with 3 different offtakers, even where the contract start dates differed for each site. All 7 PPAs were executed within minutes using the Lightning PPA - instantaneously locking in the prices online.
14 PPAs were tendered in the second portfolio, 6 different offtakers submitted bids for 2 contract periods - 1 and 2 years. The two suppliers that came in highest hadn't bid on the first tender - reflecting the varied and ever-changing utility PPA market.
A price increase of circa £100/MWh was achieved on each of the PPAs in the 2 tenders, resulting in a significant boost to the fund.
Resonance chose Renewable Exchange for:
Using the Lightning PPA meant that the Resonance team didn't need to spend hours reviewing different agreements. They were able to confidently contract with 3 different creditworthy offtakers on Lightning PPA and immediately secure the best PPA prices for all 7 sites in the first portfolio.
"Renewable Exchange provides us with an efficient and thorough way to tender multiple sites across various portfolios simultaneously. It also allows us to easily choose when to tender, which in increasingly volatile markets adds real value. The breadth of offtakers covered also gives you confidence that you are not missing out on any potential buyers."
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