On 20 October 2022, industry leaders and peer companies convened in Madrid for a roundtable discussion around current corporate energy procurement matters, including European PPA market trends & drivers, renewable energy market spotlights, legal considerations, key hedging strategies and 24/7 carbon-free energy. The event was hosted by Altenex Energy, and featured speakers from Bird & Bird, RE-Source, FlexiDAO, and Galileo.
Below are some key takeaways from the event:
- EU revenue cap on inframarginal technologies has been introduced, but EU Member States can deviate from cap and differentiate between technologies.
- Even with the increases of pricing in both PPAs and GOs, these have been modest compared to the spot electricity markets. Prices for PPAs have shown to be resilient and continue to offer long-term value to buyers looking to mitigate that volatility.
- There are three steps to take for effective hedging with PPAs: Define price risk, understand basis risk and assess volume/profile risk.
- A more flexible, creative approach helps buyers and sellers in successful PPA contracting, despite all challenges.