3min chapter

The Interchange: Recharged cover image

The Ever-Changing Role of PPAs In The Energy Transition

The Interchange: Recharged

CHAPTER

Renewables and Baseload Contracts

Renewals don't produce the same amount of electricity in a given hour. The value of the renewabl electricity production is hence, a discount or a premium to the base load contract. And here comes this risk called capture, or canipolisation. If there is more and more of the same renewal at the same spot producing, this will depress the price,. Your relative value compared to a baseload contract will diminish. It doesn't stop with concluding the piper. Whatever contract you may close, you need to keep those risks. They will change, and you will actively manage it.

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