How Nordic PV Markets are Leading the European PPA Trend
How Nordic PV Markets are Leading the European PPA Trend Visit event website The Scandinavian region is leading the well-established European trend of signing corporate PPA deals. Serving as a recent example, Nordic Solar has signed a corporate PPA with EWII and Skjern Paper, with the Danish Law firm Plesner and the advisory firm Our New Energy acting as advisors to the deal.Together with Mikkel Kring, Partner at Our New Energy, we dive into the peculiarities of this deal and why, in his view, the Nordic markets will set a trend for the European PPA market.As Mikkel will be joined by the other major stakeholders involved in the deal at the Solarplaza Summit Nordics on September 29 in Copenhagen, you can expect an even deeper analysis of the details of the deal during the event. Q: You have just advised Nordic Solar in executing an innovative corporate PPA in Demark, which involved Nordic Solar, EWII Energy and Skjern Paper. What makes this deal stand out from your perspective? A: Denmark has a large number of mid-sized corporates who wish to contribute positively to decarbonizing our society. However, they struggle with the complexity and process of executing PPAs that facilitates additional renewables capacity build-out. With this deal, we have established a framework that efficiently allocates the risks under a scalable structure. The structure resembles PPAs that we have recently executed in the UK and Sweden, where a credit-worthy energy company sits between the solar asset and the corporate and assists in the efficient allocation of risks. Another thing that makes it stand out is its pragmatism. When negotiating a PPA, it is important that all parties focus on the “ball” and are working to get the deal done. All parties in this transaction have approached the negotiations with pragmatism, which has only been possible due to the experience of the parties. Q: Nordic, and particularly Danish, power prices have followed the bullish sentiment we see across Europe. How has this impacted PPA prices? A: PPAs, today, represent an attractive opportunity from both a risk and pricing perspective. Volatility and associated budget uncertainty associated with power expenditures has never been higher, and this is driving increased interest from corporate off-takers to engage in PPA discussions, as they are an efficient tool to mitigate against such risks. As PPAs, in most Nordic markets, are still priced below the futures and forecasted curves, they further remain attractive from a pricing perspective. That being said, however, we continue to see a significant rise in PPA prices and expect this bull run to increase. In most Nordic markets, demand outweighs supply, and that is pushing PPA prices up. Q: What is your best advice for newcomers to the Nordic solar market? A: Corporates who wish to enter into PPAs should ensure that they establish a strong understanding of the key PPA mechanisms and risk allocations early in the process. We have seen too many C-PPA processes derail due to a lack of internal approvals, indecisiveness, and tardy realization of risk allocation. Developers who are looking to execute PPAs should engage with the potential off-takers early on and be clear on their desired risk allocation. At Our New Energy, we put great emphasis on the “structuring” phase, which takes place before engaging with the off-takers. It is a quantitative exercise that establishes the desired boundaries for the PPA and ensures an efficient market engagement process. This is particularly crucial in a volatile market, as lack of preparation will imply longer negotiation processes, exposing the process to changing power prices and fundamentals, in turn significantly increasing what we denote as “transaction risk”. Q: What is the outlook for the Nordic PPA market? A: Personally, I am very bullish on the Danish and Swedish (SE3/SE4) solar markets. We are seeing significant development activities, and corporate procurement interest has never been higher. We have executed 3 corporate-backed PPAs (DK1; SE3 and SE4) over the past 2 months, and have several more in the making. The PPA sizes are still smaller than those in southern Europe. However, development projects are increasing in size, and most corporate procurement interests we are currently seeing can facilitate +40MW projects. We expect to see executed PPAs in Sweden between 1-1,5 GW in 2023 and 2-2,5GW in 2024. Denmark will be able to absorb twice that volume. However, this is subject to the various P2X projects currently in planning. I am more uncertain about the Finnish PV market, as wind is an attractive alternative, and we don’t yet see the emergence of a trend of mid-sized corporates ready to absorb profile risk. The biggest challenge for the further development of the Nordic PPA market is the efficient allocation of profile risk. Something that we are working intensively on to facilitate the further decarbonization of the Nordic electricity grid. Visit event website Recent Post Basilicata – First 10 years fixed price PPA in Italy Basilicata – First 10 years fixed price PPA in Italy Get in touch After having successfully completed the closing of… Learn More 1 de abril de 2019 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid Get in touch Our New Energy has… Learn More 21 de febrero de 2019 Largest unsubsidised asset planned in Portugal to date Largest unsubsidised asset planned in Portugal to date Get in touch WElink Energy poised to grow its collaboration with Allianz Capital Partners (ACP)… Learn More 21 de febrero de 2019 Cargar más
Solar Finance & Investment Europe
Solar Finance & Investment Europe Visit event website Mikkel Kring, Partner at Our New Energy is speaking at the 9th Annual Solar Finance & Investment Europe in less than a week’s time! Hear Mikkel speak on the Panel Discussion: Structuring A Bankable Merchant Solar Deal. We will learn what a project sponsor needs to do to get these projects over the line and outline lenders’ appetite for merchant projects – which of the banks are comfortable with these deals and how will lenders approach each structure? Register today: https://lnkd.in/dtn2w78 Visit event website Recent Post Basilicata – First 10 years fixed price PPA in Italy Basilicata – First 10 years fixed price PPA in Italy Get in touch After having successfully completed the closing of… Learn More 1 de abril de 2019 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid Get in touch Our New Energy has… Learn More 21 de febrero de 2019 Largest unsubsidised asset planned in Portugal to date Largest unsubsidised asset planned in Portugal to date Get in touch WElink Energy poised to grow its collaboration with Allianz Capital Partners (ACP)… Learn More 21 de febrero de 2019 Cargar más
Iberian Energy Day
Iberian Energy Day Visit event website Join us for the latest updates from the Iberian energy market on this live webinar on 20 January. “A safe haven from soaring wholesale prices?” will be Miguel Marroquin´s topic at 15:45 – 16:05. Visit event website Recent Post Basilicata – First 10 years fixed price PPA in Italy Basilicata – First 10 years fixed price PPA in Italy Get in touch After having successfully completed the closing of… Learn More 1 de abril de 2019 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid Get in touch Our New Energy has… Learn More 21 de febrero de 2019 Largest unsubsidised asset planned in Portugal to date Largest unsubsidised asset planned in Portugal to date Get in touch WElink Energy poised to grow its collaboration with Allianz Capital Partners (ACP)… Learn More 21 de febrero de 2019 Cargar más
Solar plaza Nordics – The solar future
Solar plaza Nordics – The solar future Visit event website The deployment of solar in the Nordics is accelerating, and the interest for corporate PPAs have never been greater. The 30th of September, industry players are joining forces in Stockholm to discuss and brainstorm on best practice and share lessons learned. Our Partner Mikkel Kring will take the stage with Harald Överholm and Fredrik Nilzén to zoom in on PPA related matters Visit event website Recent Post Basilicata – First 10 years fixed price PPA in Italy Basilicata – First 10 years fixed price PPA in Italy Get in touch After having successfully completed the closing of… Learn More 1 de abril de 2019 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid Get in touch Our New Energy has… Learn More 21 de febrero de 2019 Largest unsubsidised asset planned in Portugal to date Largest unsubsidised asset planned in Portugal to date Get in touch WElink Energy poised to grow its collaboration with Allianz Capital Partners (ACP)… Learn More 21 de febrero de 2019 Cargar más
Solar Plaza Italy
Solar Plaza Italy Visit event website As Italy continues on the path of economic recovery, some few PPA deals have been announced and many more are currently under negotiation. Partner at Our New Energy, Dario Gallanti, will be discussing the topic the 15 of July at 14:00 CET at “Solarplaza – Market Parity Italy” event with a variety of experts. Visit event website Recent Post Basilicata – First 10 years fixed price PPA in Italy Basilicata – First 10 years fixed price PPA in Italy Get in touch After having successfully completed the closing of… Learn More 1 de abril de 2019 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid Get in touch Our New Energy has… Learn More 21 de febrero de 2019 Largest unsubsidised asset planned in Portugal to date Largest unsubsidised asset planned in Portugal to date Get in touch WElink Energy poised to grow its collaboration with Allianz Capital Partners (ACP)… Learn More 21 de febrero de 2019 Cargar más
Montel – The nordic energy day
Montel – The nordic energy day Visit event website With +1000 registrations this looks to be an interesting event. Tune in the 26 of august at 15.30 where our partner Mikkel Kring joins the virtual stage for a deep dive on PPAs in the Nordics together with a highly qualified panel: https://lnkd.in/dFztUhV (participation is for free) Visit event website Recent Post Basilicata – First 10 years fixed price PPA in Italy Basilicata – First 10 years fixed price PPA in Italy Get in touch After having successfully completed the closing of… Learn More 1 de abril de 2019 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid Get in touch Our New Energy has… Learn More 21 de febrero de 2019 Largest unsubsidised asset planned in Portugal to date Largest unsubsidised asset planned in Portugal to date Get in touch WElink Energy poised to grow its collaboration with Allianz Capital Partners (ACP)… Learn More 21 de febrero de 2019 Cargar más
P2X Webinar
P2X Webinar Visit event website Recently published data by Danish TSO shows that in 2020 more than 10% (=1,5TWh) of the annual wind production was curtailed due largely to instructions from the German TSO to avoid grid bottlenecks. Our Partner Mikkel Kring explains: “We believe that renewables will increasingly be delivering system services, and Denmark is a showcase of how many other markets will behave as wind penetration increases. As Our New Energy we are advising our clients on how to optimise their participation in these markets, while also preparing and participating in the growing P2X market.” Tune in on the 11th of February where we are elaborating on the commercial structuring of P2X projects (in Danish only) https://lnkd.in/e4DGYiG . Visit event website Recent Post Basilicata – First 10 years fixed price PPA in Italy Basilicata – First 10 years fixed price PPA in Italy Get in touch After having successfully completed the closing of… Learn More 1 de abril de 2019 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid Get in touch Our New Energy has… Learn More 21 de febrero de 2019 Largest unsubsidised asset planned in Portugal to date Largest unsubsidised asset planned in Portugal to date Get in touch WElink Energy poised to grow its collaboration with Allianz Capital Partners (ACP)… Learn More 21 de febrero de 2019 Cargar más
Cross Border PPA
Cross Border PPA Visit event website Thanks to Montel for the invitation. You can listen to the presentation here: https://lnkd.in/eNdCUmB Visit event website Recent Post Basilicata – First 10 years fixed price PPA in Italy Basilicata – First 10 years fixed price PPA in Italy Get in touch After having successfully completed the closing of… Learn More 1 de abril de 2019 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid Get in touch Our New Energy has… Learn More 21 de febrero de 2019 Largest unsubsidised asset planned in Portugal to date Largest unsubsidised asset planned in Portugal to date Get in touch WElink Energy poised to grow its collaboration with Allianz Capital Partners (ACP)… Learn More 21 de febrero de 2019 Cargar más
Interview with Miguel Marroquín
Interview with Miguel Marroquín Get in touch Long-term agreements are always a good investment and this is why green energy companies are growing year by year. Read this interview with Miguel Marroquin, General Manager and Founder of Our New Energy . https://www.economiadigital.es/valencia/empresas/one-la-empresa-valenciana-que-apuesta-por-la-energia-renovable_20068140_102.html Recent Post Financing Opportunities for Power-to-X in Denmark: Are the Fundamentals Established? Financing Opportunities for Power-to-X in Denmark: Are the Fundamentals Established? Get in touch Last week (04/06), PwC published a survey… Learn More 10 de junio de 2024 The energy transition puzzle has not a single solution The energy transition puzzle has not a single solution Get in touch ONE’s Partner Jakob Bendixen on the Danish GreenLab,… Learn More 1 de abril de 2024 The Silverlining: BESS and the Future of Renewables in Spain PPAs: why Italy only witnessed a few corporate cases Get in touch The Silverlining: BESS and the Future of Renewables… Learn More 14 de marzo de 2024 Cargar más
Solar Plaza Nordics – 29 April 2021
Solar Plaza Nordics – 29 April 2021 Visit event website We will attend Solar Plaza Nordics for the Webinar on Project Development and PPA Outlook in the Nordics. On April 29, 2021. Join and talk to us. Visit event website Recent Post Basilicata – First 10 years fixed price PPA in Italy Basilicata – First 10 years fixed price PPA in Italy Get in touch After having successfully completed the closing of… Learn More 1 de abril de 2019 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid 7.2MW subsidy-free Vale Matanças solar farm in Portugal starts generating power for the grid Get in touch Our New Energy has… Learn More 21 de febrero de 2019 Largest unsubsidised asset planned in Portugal to date Largest unsubsidised asset planned in Portugal to date Get in touch WElink Energy poised to grow its collaboration with Allianz Capital Partners (ACP)… Learn More 21 de febrero de 2019 Cargar más
