S&P, Pexapark partner to create new PPA benchmark

The new benchmark aims to bring better transparency and risk assessment in the renewable energy markets. Image: Photosol.

S&P Global Commodity Insights has partnered with renewables advisory firm Pexapark to create a new power purchase agreement (PPA) benchmark.

Together the two companies will create daily price indices that aim to bring improved transparency and risk assessments in renewable energy markets by combining Platts’ benchmark expertise with the advisory firm’s pricing references of PPAs across European markets.

The joint development of renewable energy price indices will facilitate the growth of PPAs as it will create benchmarks for the market with Pexapark providing evaluated prices for PPAs in solar and wind, according to S&P Global.

Price volatility in Europe has put under constraints PPA market with solar prices raising up to 38% this year, peaking at €105.99/MWh (US$110.3/MWh) in 12 May and currently at almost €90/MWh and with countries like Spain and Germany obscuring huge cannibalisation risk, according to a report from Pexapark published in June.

Alan Hayes, head of energy transition pricing at S&P Global Commodity Insights, said: “This new family of renewable energy indices will combine the independence and methodology rigor of Platts benchmarking processes with Pexapark’s established price data, technology and expertise in this growing and important sector.”

Earlier this year, PV Tech Premium sat down with Pexapark to discuss about the volatility of European energy markets and how this might affect long-term PPAs.

Read Next

August 12, 2022
ACWA Power posted strong H1 2022 results as it continues to divert its portfolio to renewables and low-carbon technologies.
August 9, 2022
Renewables developer and operator Leeward Renewable Energy (LRE) has started the construction of a 196MW solar PV plant in London, Ohio.
August 2, 2022
Spanish utility Iberdrola has entered into an agreement for the acquisition of 98MW of solar and wind projects in Poland with Augusta Energy.
August 1, 2022
US renewables developer rPlus Energies has completed work on its first operating solar plant in Carbon County, Utah.
July 21, 2022
Solar module manufacturer Seraphim Energy Group has agreed to supply 1GW of PV modules to European energy company Resolar for it EU operations.
July 21, 2022
Nearly 40GW of solar PV will be rolled out across Europe by the end of the year, according to SolarPower Europe (SPE), as the continent scrambles to deploy renewables and wean itself off Russian gas.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event