What are the PPA Trends Tracking?
The objective of Pexapark's PPA Trends family is to track the high-level evolution of the PPA pricing environment. Trends do not reflect actual transaction prices, and should not be used for benchmarking transactional PPA prices, as they have been designed to provide a quick cross-sectional overview of price movements rather than providing an absolute price level. Depending on the type, they average trends on country level, technology level (on-shore, offshore or solar) or regionally (EURO Composite).
PPA Trends
Market Trends provide an aggregated glimpse of the evolution of 10-year Pay as Produced (PAP) prices, based on a rolling average of the front- and second-year starting contracts. Hedging products of different volume structures (FHP, BL M and BL A) or tenors (and the respective risk discounts) are not included in the modelling of Trends. PPA Trends are recalculated daily using Pexapark’s valuation models based on the forward curve.
While Pexapark does not disclose reference/benchmark prices free of charge, they are available for subscribers to the PexaQuote platform.
How to use them
Use Pexapark's PPA Market Trends as a reliable marker to:
Understand market sensitivity
Reflect on past events
Draw analytical conclusions to prepare for future trajectories
Electricity markets are inherently volatile. By following our PPA Market Trends, you can track the daily evolution of trends as they unfold. You can also access relative historic changes to understand the big picture and evaluate the direction and magnitude of the rate of change.
What trend values are not
Pexapark's PPA Market Trends should not be used to:
Benchmark actual transactional PPA prices during negotiations
Attribute pricing trends on all tenors available
Claim reference prices for different volume delivery structure products
Reference PPA prices are derived from proprietary quant-driven modelling calibrating each PPA structure's risks in the specific region. Price risk, profile risk, and discounts based on bespoke risk allocation are not incorporated in the PPA Market Trends values.
While Pexapark does not disclose reference/benchmark prices free of charge, they are available for subscribers to the PexaQuote platform.