The conventional renewable energy project is built around a relatively straightforward model: wind turbines or photovoltaic panels generate electricity, a substation exports it to the grid, and a trader or offtaker sells the output.
That model is beginning to evolve....
A power purchase agreement (PPA) offering a renewable project a price of €70/MWh may appear to provide a straightforward hedge against electricity-market volatility. However, the headline price alone reveals little about the level of risk actually transferred by the...
Renewable project finance has traditionally relied on a relatively straightforward set of assumptions to determine how much debt a project can support. Expected electricity generation was multiplied by forecast market prices to estimate revenue, operating costs were deducted, and...