European Renewable Energy Marketplace

PPA Landscape Across Europe

Buyers take on new strategies in PPA market

In today’s market, where demand is outpacing supply, prospective buyers should be prepared to bid into sellers’ auctions. It is becoming increasingly common for sellers to issue “reverse tenders,” in which renewable energy developers or asset owners invite corporates to propose PPA prices, and ultimately negotiate the PPA with the corporate that offers the most competitive bid. Altenex Energy can support buyers in analyzing market dynamics and preparing a competitive bid, which is likely to be received favorably if the buyer has a strong credit rating.

Buyers may also want to consider a wider pool of projects and can potentially benefit from the increased supply of operating projects becoming available for contracting. With projects phasing out of government subsidies across multiple countries – notably Germany - project owners may be willing to offer corporate offtakers one- to seven-year PPAs on these projects. While such contracts do not offer additionality claims, they can help buyers hedge energy price risk and secure EACs in compliance with emissions reduction goals.

It is becoming increasingly common for sellers to issue "reverse tenders" in which renewable energy developers or asset owners invite corporates to propose PPA prices, and ultimately negotiate the PPA with the corporate that offers the most competitive bid.