EP.168 Pierre Bartholin, Senior Director, Glennmont Partners
Nov 16, 2023
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Delve into the intricacies of revenue strategy with Pierre Bartholin from Glennmont Partners. Topics include the significance of PPAs for renewables, revenue strategy for portfolio managers, and perspectives from developers, utilities, traders, and corporate offtakers. Explore the transition to PPAs, energy risk management strategies, evolution of lenders' attitudes, banks reshaping PPA structures, and the role of strategic partnerships in the renewable energy sector.
PPAs are crucial for revenue strategy in the renewable energy sector, attracting interest from developers, utilities, traders, and corporate offtakers.
Transitioning to corporate PPAs is a growing trend for renewable portfolio managers, requiring specialized teams for negotiations and pricing structures.
Deep dives
Overview of Power Purchase Agreements (PPAs)
Power Purchase Agreements (PPAs) play a crucial role in revenue strategies for renewable portfolio managers like Glenmont Partners. PPAs are long-term agreements between developers generating renewable energy and off-takers, determining duration, volume, and prices. Glenmont's focus on transitioning from subsidized models to merchant markets emphasizes the need for bankable PPAs to secure financing and hedge against market volatility.
Emergence of Corporate PPAs
The podcast discusses the shift towards corporate PPAs as a significant trend in the energy market. Glenmont Partners highlights the increasing presence of corporates as off-takers, alongside traditional utilities, in PPA negotiations. Corporates are attracted to long-term PPA contracts due to sustainability commitments and price hedging benefits, though negotiations with corporates may require more time and specialized teams.
Innovative Approaches to PPA Pricing
Glenmont's innovative approach to PPA pricing includes adapting to changing renewable capture prices and market dynamics. The discussion delves into the complexities of pricing structures, including fixed prices, colors, and discounts, to mitigate revenue risks. Glenmont's focus on portfolio effects and mixed technology profiles aims to offer competitive pricing and revenue security across diverse projects.
Portfolio Management for Risk Mitigation
Glenmont's portfolio management strategy focuses on diversification to mitigate revenue risks and enhance financial stability. By simulating diverse scenarios and stress testing portfolio parameters, Glenmont values its portfolio's resilience against extreme market conditions. The emphasis on risk management extends to merchant exposure, highlighting the importance of strategic planning and innovative business models for long-term sustainability.
In this Energy Unplugged episode, we delve into the intricacies of revenue strategy for renewable portfolio managers, focusing specifically on the topic of power purchase agreements (PPAs). We are pleased to be joined by Pierre Bartholin, Senior Director, Glennmont Partners in conversation with our Co-Head of Advisory in Central Europe, Thekla von Bülow.
With more than 12 years of experience in the carbon and power markets and having contributed to pioneering business models within SG CIB, Solvay, Lightsource BP and GE, Pierre joined Glennmont Partners in 2021 as Head of Revenue. In the past years he has been developing power-market-revenue solutions to secure revenue generation from renewable assets, such as PPA structures with corporate offtakers and utilities.
Main topics include the following:
• Understanding the significance of PPAs and their growing importance for funds and renewable developers across Europe • Revenue strategy for renewables portfolio managers • Perspectives on PPAs from the different market sides, including developers, utilities, traders and corporate offtakers