Author: Cyriel de Jong, KYOS Energy Analytics
This series PPA Insights is all about the financials of renewable power and PPAs (Power Purchase Agreements). It covers all aspects involved in the financial analysis of renewable generation, such as solar and wind power. The center of our attention are so-called PPA contracts, Power Purchase Agreements.
The financial management of renewable generation is a very interesting and challenging subject. Note that several topics are also relevant for the financial management of conventional power generation assets and for energy storage. The main difference is that the dispatch of those assets can be optimized: produce when prices are high and don’t produce (or even store) when prices are low. The renewable assets under investigation, however, are non-dispatchable, intermittent. This means that they are exposed to volume risks, and these volume variations generally lead to price risks.
1 The future is green – outline
2 PPA Contract structures and valuation
3 Production patterns of wind and solar
4 Solar radiation and wind speed data
5 Creating simulations for wind and solar production
6 Creating price forward curves
7 Generation economics and the merit order
8 Fundamental modelling of power markets
9 Valuing long-term investments and PPA contracts
10 Renewable energy certificates
11 Short term forecasting and imbalance costs
We have written the articles to share our knowledge and hope it provided a useful source of information for newcomers and experienced professionals alike. Whether you are buying electricity for your company, developing new projects, working for a utility, providing financing, drafting policies, or just generally interested: we hope you have read the articles with interest and share your feedback with us: info@kyos.com.