Energy producer Drax has entered into a strategic partnership with price information platform Pexapark in a move the pair say will support price transparency in the UK PPA market.
Drax has buyers of business power purchase agreements (PPAs) from a “broad spectrum” of industries, the company said, allowing it to understand the demands companies have on the PPA process.
It will provide insight into its customers’ activities, enforcing confidentiality and data privacy agreements, so that Pexapark can better assess the UK market environment.
Pexapark, which monitors the PPA market across Europe, will provide Drax customers with ‘an appetite for PPAs’ with GB Quarterly Market Reports. Pexapark’s reports track average prices and number of deals signed – so do European insights covered in depth on our sister site, PV technology.
According to Drax, there is a ‘particularly acute’ lack of transparency in the UK PPA market as the gap between developer expectations and the fair market value of PPAs widens.
On the one hand, developers’ expectations are being raised by high Contracts for Difference (CfD) clearing prices, while on the other hand, companies are looking for long-term certainty in an increasingly volatile (and expensive) energy market.
In May, figures from Pexapark attracted attention Great Britain as a region with high PPA activity compared to the rest of Europe.
According to Pexapark COO and co-founder Luca Pedretti: “Combining Drax’s leadership in energy supply and services with Pexapark’s price intelligence tools enables smarter, faster and fairer decision-making for renewable energy market participants.”
