The growth of renewable energy has been reinforced through continual technology improvements, strong competition between developers and the supply chain, pioneering business models, subsidies and market structure. This has all helped to achieve substantial cost savings and has enhanced the economic viability of renewable energy against ‘dirty’ power generation sources.
In the early days, renewable energy projects have been backed by government support and the expansion of the technology-enabled developers and manufacturers to enhance operational efficiencies resulted in huge cost savings in both CAPEX and OPEX. With costs falling even further, governments have been exploring whether to pull back some of their support and move towards auctions mechanisms to drive market expansion. Project developers now have to seek other avenues for maximised revenue generation to enhance a project’s bankability. Power purchase agreements (PPAs) have emerged as a vital market instrument for doing this which protect stakeholders from power pricing fluctuations.
Due to the ongoing Covid-19 pandemic, governments have put in place measures to slow the spread of the virus, causing office closures and reductions in staffing for manufacturing plants, in turn, resulting in a power consumption decline and slump in electricity prices.
Join this webinar to explore what the PPA market place looks like today, what mechanisms are in place, and how the impact of the current situation could impact existing and upcoming PPAs of renewable projects.