Every renewable energy generator wants to know exactly how much revenue they can make from their power, but energy markets are volatile, subsidies can be difficult to understand, and up-to-date green certificate prices are tough to ascertain.
That’s why one of the key features we offer on the Renewable Exchange PPA platform is our PPA pricing engine. It lets generators quickly see highly accurate PPA rate estimates, specific to their renewable asset(s). It’s updated daily, and free to access.
Renewable Exchange was built to make the renewable energy market more transparent, fair and accessible for generators of all sizes. When generators know how much money they can make for their power, they can make more informed decisions, and the road to decarbonisation becomes a lot smoother. Our goal is that generators don’t need to tender their power to know what price they will get - our forecast does the job.
As we have grown as a company, our data team has grown, and our access to market data has increased exponentially: Our forecasting methodology is built on our experience executing over 2,700 PPAs with over 30,000 bids. As a result, our PPA pricing data has become ever more accurate.
To access the PPA forecast, generators first need to register on the Renewable Exchange PPA platform. Once their renewable asset - or portfolio of assets - have been added to the platform, generators can view their forecast renewal price graph, which is updated daily. This lets them gain an understanding of market trends, empowering them to make informed decisions on how and when to sell their power.
As we run the forecast daily, generators are offered insights into historical prices and therefore gain an understanding of market trends. They can also toggle between PPA contract lengths from 6 months to two years, to see how this will affect their forecasted revenue. It is also possible to see the forecasted embedded benefits broken down by component, such as transmission losses, distribution losses and Distribution Use of System (DUoS) charges.
Many different components go into the final PPA value. The methodology combines key pricing components, such as the wholesale power price, embedded benefits, REGOs and subsidies. The values are all calculated in relation to the specific location, expected export levels and volume data of the asset. This is driven by continuously updated fundamentals and published data from numerous sources including the distribution network operators and the national grid system operator. Through our REGO forward curve we have a clear understanding of the value of REGOs.
We continuously monitor the performance of our model, calibrating model parameters using over 30,000 proprietary real life PPA bids placed on Renewable Exchange. This ensures the accuracy is as high as possible.
In other words, there is a great deal occurring behind the scenes on our end to make the process as seamless as possible for generators. To make it even easier to know when to go to market, generators can set a target price and get a notification if the forecast reaches or exceeds the target.
To get started on the renewable exchange platform, fill in our registration form now.
