Record renewable generation has left some energy market participants rushing to come to grips with how to price Power Purchase Agreements (PPAs) and manage risk for this rapidly growing asset class.
In this month’s issue:
Getting the basics right – demystifying buying, selling, and managing the risks of PPAs
Record growth has left some energy market participants rushing to come to grips with how to price and manage this rapidly growing asset class.
To assist, we’ve put together this introductory article, designed to cover the basics of buying, selling, and managing risk of PPAs in your portfolio.
Webinar Masterclass – PPAs for Renewables
Lacima partnered with EEX Group to present a webinar on how to value PPAs and calculate risk exposures for hedged and unhedged portfolios.
Learn how to effectively assess the value of PPA trades and manage portfolio risk, watch Lacima’s ‘Pricing and risk management of Power Purchase Agreements for renewables’ masterclass.
In this PPA Masterclass, and using a hypothetical portfolio of Spanish Solar and German Wind PPAs, you’ll learn:
- About typical PPA structures
- How to conduct pre-trade deal analysis and post-trade risk management
- Different ways to value PPAs and determine market and credit risk
Event Wrap-up – Japan Power Anniversary
Key highlights from Lacima and EEX Group’s Japan Power Anniversary event in Tokyo.
During the event, Lacima’s Chris Strickland shared insights on LNG deal and portfolio analysis and managing risk with various hedging strategies. Key take-outs from the other keynote presentations included:
- As of the event, a total of 74 participants had traded more Japan Power Futures in this financial year, than in the entire previous financial year
- This jump in trading volume took Japan from the bottom of the table to the 7th largest trader of power futures on EEX
- EEX officially announced their establishment of a subsidiary in Japan
- EEX Group’s Peter Blogg spoke to the introduction of their new LNG $TTF product, and gave us a sneak peek into their upcoming launch of the $ denominated THE and PEG Futures and development of LNG freight futures
- EEX’s Steffen Riediger laid out the Group’s strategic roadmap for Japan which included an early insight into their plans
Thank you to everyone who could join us. For those who couldn’t, please reach out to us at info@lacimagroup.com
Lacima ranks #1 twelve years in a row
Lacima continues its winning streak as a leader in energy and commodities analytics.
The Lacima team takes out the top spot in four categories in the 2024 Energy Risk Software Rankings and secures top five placings in a further 27 categories.