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Transmission

Power purchase agreements with Luca Pedretti (Co-Founder & COO @ Pexapark)

Jan 4, 2024
Luca Pedretti, Co-Founder & COO of Pexapark, discusses the evolving landscape of power purchase agreements (PPAs), emphasizing shorter contracts, base load PPAs, and shale gas. The conversation covers Pexapark's role in supporting PPA transactions and addressing risks in renewable energy investments, highlighting the importance of revenue guarantees and intermediary involvement in the market.
36:50

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Podcast summary created with Snipd AI

Quick takeaways

  • PPAs are evolving beyond high-demand consumers to cater to smaller industrial and business enterprises.
  • Long-term PPA market complexity requires custom agreements and intermediaries for risk management and cost reduction.

Deep dives

Overview of PPS Contracts and Market Expansion

Power Purchase Agreements (PPAs) serve as bilateral agreements governing the exchange of electrons, structuring volume, pricing, and handling credit. Typically spanning ten years, these agreements link to financing for renewable projects like wind and solar parks. With a market predominantly focusing on solar and wind assets, the challenge lies in expanding the PPA market to accommodate the growing demand for renewable energy.

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