Energy Market Highlights: European power futures have spiked this week to above 230 EUR/MWh following the EU announcement to ban Russian oil imports by end of this year. Power prices continue to be driven by the natural gas market (marginal cost curve). The current price shock and very significant price volatility would seem to stem […]
European Energy Market Update – Week 18 (May 8th, 2022) Read More »
Why are gas prices in Europe so high? The European gas market without Russia is going to create a lot of uncertainties and power price volatility. Power prices can double, at least, vs. the historical market average. One of the reasons is Russia is Europe’s largest natural gas provider, supplying 33% of the region’s demand
European gas market without Russian natural gas leads to the doubling of power prices Read More »
The European Commission approved an Iberian exemption this week, allowing Spain and Portugal to limit gas prices for the next 12 months. The law is expected to be passed next week which should help to calm down the power market. The political accord allows for the construction of a temporary mechanism that will cap gas
Spain and Portugal to limit gas prices to lower electricity markets Read More »
WEEKLY ENERGY MARKET UPDATE: Power prices continue to be driven by the natural gas market (marginal cost). There’s an ongoing debate at the EU level to discontent the power market pricing from gas or change the merit-order pricing rules. Oil prices moved lower after the IMF downgraded its forecast for global economic growth as well
European Energy Market Update – Week 17 (May 1st, 2022) Read More »
What is PPA contract structure? PPA contracts are an appealing solution to market uncertainty for both the corporate consumer and the developer. They achieve several objectives, including financial access, carbon reduction, price and income predictability, supply security, and risk management. A fundamental benefit of a PPA contract for renewable developers and their financiers is stable
Most popular PPA contract architectures in Europe to reach renewable energy goals Read More »
Weekly European energy market update: Below-average French nuclear availability is likely to keep power summer contracts supported. Recently, EDF has found new cracks at 2 more reactors (Flamanville) bringing the forecasted electricity output down. Unless Russia’s supply of gas to the EU is increased, insufficient LNG capacities won’t be able to replace EU gas needs.
European Energy Market Update – Week 16 (Apr 24th, 2022) Read More »
What is a financial PPA? Financial PPA (Virtual) is a financial contract rather than a power contract. The off-taker does not receive or take legal title to the electricity, and in this way, it’s a “virtual” power purchase agreement. In a financial PPA, an off-taker agrees to purchase a project’s output and associated RECs at a
Physical or Financial PPA. What is the best renewable option? Read More »
Energy Market Highlights: Gas market price increased by 11% WoW as the market remains worried about the future of Russian gas supply. The forward power curve is still in a backwardation. However, the spread between Y+1 contracts and >Y+1 contracts has been reduced over the past week by having Y+2 contacts moving significantly higher (+15%
European Energy Market Update – Week 15 (Apr 17th, 2022) Read More »
How to prepare an electricity invoice breakdown report? Electricity bills could be challenging to understand for a regular user. Not only electricity bill structures are different from a market to market and a utility company you work with, but there can also be multiple line items in an electricity invoice that make it difficult for
Electricity bill supplier reporting to better control your energy spend Read More »
What are PPA Head of Terms (HoT)? PPA Heads of Terms (HoT) is a document that sets out the terms of a commercial transaction agreed in principle between parties in the course of negotiations of a Power Purchase Agreement. The main objective of HoT is to have written confirmation of the main terms agreed in
How to prepare PPA Head of Terms to lead negotiations? Read More »
