AFRY Management Consulting and Pexapark recently launched the Daily Valuation Curve to provide renewable energy investors, developers and project owners with a consistent valuation framework for investments in renewable energy in all directions, helping to manage market volatility and promote the energy transition.
AFRY is a leader in engineering, design and consulting services with experience in a broad range of global electricity markets, and a deep understanding of the benefits of alternative electricity market designs. Pexapark is a software and consulting company specializing in renewable energy sales, power purchase agreements (PPAs) and market risk management for renewable energy.
The Daily Valuation Curve is considered the market’s first reference point for consistent valuations from years to decades and from pre-deal to post-deal. The product combines the trusted methodologies of both companies, is standardized and overseen by a committee of experts.
Market research findings show that future prices and fundamental price curves are the two most important new data services that renewable energy investors will purchase in 2023, indicating growing demand for reliable price data services, especially by PPA markets. The Daily Valuation Curve is a much-needed and consistent valuation framework that provides greater certainty to renewable energy investors.
“The PPA markets have evolved dramatically over the past year. Faced with market volatility and regulatory changes, renewable energy stakeholders are quickly arming themselves with the data, tools and systems they need to evaluate risk, enter into PPAs and make confident investment and portfolio management choices.” says Luca Pedretti, COO and co-founder of Pexapark.
The recent research shows the importance of combining both short-term future prices and long-term fundamental price curves for a scientific investment decision. Dr. Jan Wierzba, Senior Principal of AFRY Management Consulting, described these two types of pricing information as “water and oil“; they do not blend easily. “This is where the unique ‘blending’ methodology developed for the Daily Valuation Curve will deliver great benefits for both new and existing assets,” said Dr. Jan Wierzba.
The daily valuation curve is available via the AFRY Analytics platform and via Pexapark’s price reference platform, PexaQuote. click here For more information.
