October 20, 2020
Author: Dr. Steffen Hundt
About Think RE:
Think RE provides outstanding workshop formats to transfers tailor-made knowledge for all aspects, around sustainable renewable energy knowledge and successful PPA transactions. The services include commercial key elements like financial modeling and power price forecasting, sourcing right contractual counterparts as well as fostering transparency for subsidy-free renewable projects.

Think RE participated in PPA panel of “Green Week”

Think RE has participated in the panel of the “Green Week” provided by Montel News. We have introduced a specific floor price mechanism that can be increasingly observed in advanced markets for power purchase agreements (PPA) such as Sweden or Spain. The audience of more than 150 people has included experts from project developers, renewable energy investors as well as off-takers such as corporates and utilities.

Floor Pricing

The introduced floor price mechanism (so-called market following PPA) significantly reduces the risk of off-takers to pay compensations under a power purchase agreement while enabling renewable energy producers to participate in increasing power market prices. However, market following PPAs may hamper the access to debt financing which may result in a lower bankability of renewable energy assets. Thus, the question if market following PPAs are applicable strongly depends on the financing strategy of the renewable energy investor.

We want to say thank you to Montel for having organized this excellent event!