June 1, 2020 — Best Practices
Power price partnering with Pexapark
In the last month, we added Swiss power price specialist Pexapark’s daily revenue tracking to our Marketplace of add-on features for the Greenbyte Platform. But why do we think this will be of value to our users? We explain all in this blog post.
Marketing Coordinator, Greenbyte
‘Why are people from Sweden called Swiss?’
We’re not! You only need a quick look on Quora to see how often people mix up the Swedes and the Swiss. Yes, we’re both European countries with mountains, skiing and the same first two letters, but that’s it! Countries linked by a common confusion.
Until now. In the last month, we’ve taken steps to deepen that relationship in a more constructive way by adding additional energy sales data from Swiss power purchase agreement expert Pexapark to our Greenbyte Platform. This is part of the Greenbyte Marketplace of add-on apps that help you customize your renewables data toolbox.
In this article we’re going to share a quick introduction about what it is, how the tie-up between our two companies came about, and why it is timely in the current market.
Launched in 2017, Zurich-based Pexapark provides software and advisory services for clean energy power purchase agreements.
This has been an important part of the renewables market in recent years. We have seen more corporates commit to buying power from wind and solar farms since the Paris climate deal of 2015. Bloomberg New Energy Finance reported in January that over 100 corporations signed over 19.5GW of clean energy PPAs in 2019, which is a 43% rise on the 13.6GW signed in 2018 and more than triple the level in 2017.
PPAs with private buyers have also become an important way for renewable energy developers to take projects to financial close as more countries have moved towards competitive auctions. Pexapark was founded to capitalise on this growing market.
In the last month, we have added Pexapark’s power price tracking functionality as an add-on to the Greenbyte Platform. Its Energy Sales Report shows users the revenue generated from their wind and solar assets each day. This enables them to make the right decisions on O&M and improve the profitability of their assets.
You can find out more about the technical details here.
Why we linked up
From Greenbyte’s perspective, this partnership is an ideal fit.
You will no doubt be aware that our Platform enables you to see how your assets are performing in real-time, so you can highlight problems and develop an O&M strategy that helps to address them. Pexapark’s add-on uses that data to show you every day how much income your project should have made given those performance levels.
This is of increasing importance to operators in the wind and solar sectors. We have seen more countries ditch FITs in favour of competitive auctions. This means more owners are dealing with higher levels of merchant risk, including fluctuating power prices, at their assets. That can make it cumbersome for companies to track returns in their portfolio – and this is where Pexapark’s automated system can add value.
The partnership is still in its relatively early days. We started discussing partnering in September and quickly saw it could work well. We saw that we have similar working cultures and complementary platforms that could be of real benefit to customers.
From there, we moved quickly and we implemented the first demonstration project in March. We are now talking to more of our customers about how this could potentially benefit them. If you’d like to talk to us about this system, please get in touch.
Why this makes sense now
We have seen huge fluctuations in energy pricing around the world in the first half of 2020, and companies are under pressure in a way they haven’t been for a decade.
In that environment it has never been more important for companies to focus on the profitability of their assets. Owners need to be well-placed for an electricity system that will include a higher penetration of renewables, and the price fluctuations that can bring. Price data may also help with making decisions around energy storage.
In short, we see this tie-up as hugely exciting, and we expect to make huge strides with new data streams and features over the coming year. We believe that this will bring real benefits to Greenbyte clients. We’d love to take you along for the ride.
And if you need chocolate or pocket knives, don’t come to us!