Export PPA Prices

[AlexMcGowan]

Import electricity prices took another 0.4p/kWh spike yesterday across the board with all suppliers, a combination of both "the beast from the east" and anticipated oil price rises from the middle east to the UK.

This has left many suppliers scrambling for renewable PPA agreements to either fill gaps in their portfolio or protect themselves somewhat against fluctuations like this in the future.

Many of my contacts within the industry are being very open and honest about the situation, and have said to me that their companies are fully aware that they are going to have to pay over the odds for export PPA's in the current market, they simply don't care, they just want as many new PPA's in place as possible.

I'd very confidently say that this is the best time to arrange a PPA contract we've seen in years. Even if you have an existing deal in place, there's no reason why you can't secure a contract today that will commence as soon as your current deal expires.

If you'd like to take advantage of this, and would like me to get you prices from my supplier network, please feel free to send me an email at [email protected].

 

[Sandy]

What is the export rate at the moment?

 

[AlexMcGowan]

What is the export rate at the moment?

Hi Sandy, it varies from supplier to supplier and system to system, but on average it's sitting around 6.5p/kWh. All of our pricing is bespoke however, so in order to get prices specific to your system we'd run a full tender, giving all 15 of our suppliers a chance to bid for the export.

 

[AlexMcGowan]

I've just been informed by one of my contacts that energy suppliers "expect" wholesale energy prices to stabilise next week whilst discussing grid imported energy.

Whilst this is good news for businesses, it will likely result in PPA export prices reducing to match.

 

[The Son]

£62.03 from Opus yesterday

 

[AlexMcGowan]

£62.03 from Opus yesterday

We achieved a contract for one of our customers today of £61.40 in summer months and £67.20 in winter months

 

[surreyhillsjacob]

just got some quotes in and looks like prices have continued to rise .. doesn't seem like you want to rush at the moment

 

[DGC1]

just got some quotes in and looks like prices have continued to rise .. doesn't seem like you want to rush at the moment

hi
what prices are you getting back? pm me if you would rather

 

[AlexMcGowan]

Opus have now completed the transition over to Drax Renewables, and they are coming in to the market with incredibly competitive pricing. My contact there has told me their sole focus is increasing their renewable portfolio, with the profit/margin onus being on the import side of the company.

The market is an extremely good place at the minute, as I’m sure everybody knows, but we’ve just negotiated an all inclusive rate of £81.50/MWh for one of our customers.

If anyone wants to capitalise please don’t hesitate in contacting me, [email protected]

 

[AlexMcGowan]

My contact at Drax has just given me the heads up that they expect export PPA prices to "plateau and start returning to normal levels" in the very near future, based on their most recent forecasting data, so if anybody is waiting for prices to continue to rise now might be the time to put something in place.

As part of the Opus/Drax transition, they have also purchased 4 years worth of forecasting data, allowing them to lock in more accurate longer term export PPA deals, with less hedging impact on the unit rate, so longer term deals may now be a viable option for generators looking for long term stability. This future forecasting also allows them to offer prices to generators with renewal dates further in to the future more accurately.

As always, if any generators would like to explore their options I'm happy to help in any way that I can. [email protected].

 

[AlexMcGowan]

A fixed embedded benefits offer received this morning.

Can it touch £90/MWh before the world goes back to normal?

 

[Sandy]

A fixed embedded benefits offer received this morning.

Can it touch £90/MWh before the world goes back to normal?

View attachment 960064

How early can you renegotiate a contract 3 months?

 

[AlexMcGowan]

How early can you renegotiate a contract 3 months?

Hi Sandy,

Are you looking for a 3 month term contract with a fast turn around? Or 12, 24 and 36 offers for a supply due for renewal in 3 months time?

If you’re after a quick turn around we can do same day pricing, and can get a thorough tender to you within hours usually, we just can’t guarantee all suppliers will be able to offer bids if they’ve got a backlog. Usually a full tender takes approximately 3 working days.

If it was the latter, 3 months is a perfectly fine distance of time in order to source renewal prices, suppliers will be confident their forecasting is accurate that far ahead and it won’t require much variance hedging, allowing them to offer competitive deals.

 

[Wild Oat]

A fixed embedded benefits offer received this morning.

Can it touch £90/MWh before the world goes back to normal?

View attachment 960064

Just had a 1 year ppa renewal [email protected], have prices eased since Monday?

 

[AlexMcGowan]

Just had a 1 year ppa renewal [email protected], have prices eased since Monday?

Hi Wild Oat,

Not that we’ve seen, we’ve been getting offers today or £87.50 fully fixed.

 

[e3120]

With thanks to the prompt of this thread, I've jumped from a tracker to a fixed 9.4p. Offered 8p for following 12 months - thoughts?

It certainly makes a difference to 12 months ago when 2.6p was my low and all the chat was about export tariffs.

 

[DaveGrohl]

With thanks to the prompt of this thread, I've jumped from a tracker to a fixed 9.4p. Offered 8p for following 12 months - thoughts?

It certainly makes a difference to 12 months ago when 2.6p was my low and all the chat was about export tariffs.

Who with?

 

[e3120]

Who with?

Lj

 

[AlexMcGowan]

With thanks to the prompt of this thread, I've jumped from a tracker to a fixed 9.4p. Offered 8p for following 12 months - thoughts?

It certainly makes a difference to 12 months ago when 2.6p was my low and all the chat was about export tariffs.

Sounds like a good deal to me, happy to do a full tender if you'd like to confirm it's the very best out there if you'd like.

 

[DaveGrohl]

We've now signed a new contract a couple of months before our renewal date with Alex's help. Time will tell if we've timed it right, but at least Alex has flagged up the strength of the marker currently ( and got my arse into gear as a result) so I'm grateful for that at least. The process was completely painless which is in stark contrast to our "dealings" with Limejump a year ago.