New Export PPA Energy Suppliers

[AlexMcGowan]

We’re currently assisting a number of energy suppliers in entering the export PPA market for the first time, helping to develop their agreements and methods of working.

As we’re in a position to effect processes, I’d really appreciate input from asset owners themselves.

What annoys you most about export PPA agreements?

What would you change if you could?

Is there anything you’ve always wanted suppliers to adopt but they never have?

So far each supplier has come with a slightly different approach from each other, and from the existing market, for example; one of these new suppliers isn’t reducing the fixed unit rate offer for longer term contracts, instead offering exactly the same as the 12 month option, allowing asset owners to fix prices when markets are high for the long term, a few weeks ago we secured a 3 year deal for a customer of 6.3p/kWh.

Any thoughts, ideas, or input is greatly appreciated.

 

[smallholder99]

what is the progress on small power exporters doing deals with their local consumers to cut out long distance transmission costs

 

[AlexMcGowan]

We're currently looking at a number of different solutions for a few different customers in this area of the market, as we work on both an export and import basis, so it makes sense for our portfolio to work together to provide better rates for everybody involved if possible.

As it stands, there's no one-size-fits-all solution, and it would depend on how you define "small" exporters, currently I'd say the average size customer we're looking in to this for is around the 2MW mark. It would likely be structured as a sleeved PPA, which can be quite complex agreements usually, as they're more often than not on a vast scale and involve a great deal of liability. What we're attempting to do is simplify the arrangement somewhat, whilst working with a single energy supply for transmission license purposes, whilst we retain most of the legwork such as invoicing and monitoring etc.

In short (a bit late for that already I think), it has to be bespoke, as every agreement is going to be significantly different from the last as it currently stands, hopefully that'll change in the future and there's enough demand for it to become a standardised product. If you're a generator that has off-takers in mind then I'd be happy to investigate it for you, speak to some of my contacts to see what's achievable in this instance.

My email is [email protected]

 

[Winch Farming]

Hi Alex, If you are new to this and looking for feedback / research on PPAs have a chat to New Stream Renewables. We have used them for a good few years now on PPA renewals, advice etc.. They seem to have good coverage across new suppliers like Valda Energy and others... and corporate off-takes. Good luck with it.

 

[AlexMcGowan]

Hi Alex, If you are new to this and looking for feedback / research on PPAs have a chat to New Stream Renewables. We have used them for a good few years now on PPA renewals, advice etc.. They seem to have good coverage across new suppliers like Valda Energy and others... and corporate off-takes. Good luck with it.

Apologies for the confusion if I’ve portrayed an image that we’re new to this, as that’s far from true. I personally used to manage the procurement of the Savills (UK) energy portfolio for many years, that had an annual expenditure of £185,000,000 on utilities, including companies like Tesco, British Airways, John Lewis and NFU.

Over 4 years ago now I established Oakwood Energy Group with a relative of mine, who is a commercial electrical contractor, and somewhat of a renewable energy expert, allowing us to offer both physical maintenance, designs, installations as well as contractual services.

Over the past few months we’ve had 3 suppliers come to us and ask us to assist them in entering in to the PPA export market, 2 didn’t even have PPA agreements drawn up yet, so my post above was asking for feedback on their behalf, on what generators would like to see and not like to see in a PPA agreement, if anyone in this group had ever wondered ‘why don’t suppliers ever.....’. Whilst I know what issues I have with the export market, I sadly have never been a generator myself, so thought it would be worthwhile hearing thoughts directly from generators.

Again, apologies if that didn’t come across in the post.

 

[Winch Farming]

I don't need the hard sell thanks I was trying to be helpful. This a forum for farmers not a sales platform for you! Unsubscribe. Thank you and good luck.

 

[AlexMcGowan]

I'm not sure where that's coming from if I'm honest, I wasn't giving you a hard sell, I apologised for the misunderstanding, and was then explaining our background, as I can't have people under the impression that we are "new to this" as you put it, as a lot of renewable generators rely on our advice and input to gain the best possible rates available to them.

I'm a member of the forum, just like you, here to offer industry insight and knowledge to anybody that wants it, I've never hard sold to anybody on here, I've simply offered my opinion and offered to help if they wanted assistance. Surely it benefits everybody to have somebody experienced in the energy industry and renewable technology, on a Forum specifically about Renewable Energy? Rather than directing the conversation elsewhere.

I won't be unsubscribing thank you, we own a corporate membership that allows us to include links or talk about the work that we do.

 

[surreyhillsjacob]

I don't need the hard sell thanks I was trying to be helpful. This a forum for farmers not a sales platform for you! Unsubscribe. Thank you and good luck.

Hah.. well said. Always interested to hear peoples views, advice and expereinces but it all does feel a bit sales'ey

 

[AlexMcGowan]

This whole thread was started asking for input from renewable generators, so that we could help improve the export PPA market from the inside, to generators benefit.

I then responded to somebody asking a question about a specific type of PPA.

Sorry if that comes across as "sales'ey", but I'm not sure how anybody would have answered that question without discussing sleeved PPA's and how they work.