The PPA market faces unprecedented challenges.
Increases in the frequency — and depth — of negative wholesale electricity prices has caused significant concern across most European markets in recent years, with impacts for both solar and wind generation.
Various market-specific factors, such as subsidy schemes, interconnection capacity, strategic bidding strategies by energy producers, and inflexible supply all contribute to this phenomenon. Even markets not yet experiencing negative prices are braced for their imminent arrival, highlighting the critical need for up-to-date insights into market conditions through comprehensive forecasting and rigorous price analysis such as that provided by LevelTen Energy.
The Nordics have been experiencing negative prices for longer than most regions, largely due to heavy (and early) wind buildout. Developers are extremely aware of the challenges caused by cannibalisation, and their collective role in supporting the reliability of the grid.
This downloadable article provides an introduction to negative price trends in the Nordic markets, and explores contractual tools PPA dealmakers are using to mitigate negative price risk.
What you'll discover:
- Key drivers behind rising negative price risk, particularly in the Nordic markets
- How to mitigate negative price risk within the contractual structure of PPAs
- Settlement structures being used in today’s market to balance counterparty risk
- How to ensure financial viability for your PPA deals
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Click here to join a free webinar to discuss the report's findings, led by report author Maija Ahola with expert guests.
To learn more about how LevelTen Energy can support your team's procurement strategy in a world of negative price risk, reach out to our team at info@leveltenenergy.com.
