Strategic Advisory

Hedging & PPA Strategies

We design and optimise hedging strategies, and advise on sourcing activities such as PPA contracting.

what is Hedging & PPA Strategies?

We design and optimise hedging strategies, identifying the best combination of contract structures, baseload contracts alongside wind and solar PPAs, combined with BESS where relevant, with market risk quantified and each strategy aligned to a client’s own risk mandate. In PPA negotiations, we quantify how commercial structures affect fair price and risks such as price and imbalance, identify suitable tenors, and assess how terms play out at portfolio level, alongside mitigating measures like diversification and flexibility.

We work with both buyers and sellers: IPPs, institutional investors, utilities, developers and industry, weighing questions such as what portfolio composition and hedging approach makes sense, how PPA structures affect portfolio risk, what a fair price actually is, and how flexibility can raise revenue and lower risk.

Benefits of Hedging & PPA Strategies

PPA and power market knowledge

Our team brings extensive experience in PPA evaluation and negotiation, combined with power market modelling and scenario analysis to deliver tailored advice.

Scenario analysis

We tailor scenario analysis to identify and quantify the most relevant risks. Combined with our modelling across 33 weather years, this gives clients a detailed view of the upside and downside of their investment.

Distinct and quantified results

Our modelling delivers quantified advice. Combined with scenario analysis, this gives clients clarity and firm advice, enabling efficient decision-making.

Suited to your needs

Every analysis is shaped around a client's own challenges and constraints. Grid limitations, budget, risk aversion and project-specific parameters are built into the models and factored into the analysis.

Our experience in the field

Large Swedish industry Client

The problem

The client needed answers to three questions: how a PPA fits into its power sourcing strategy, what tenor and share of PPAs suits its electricity demand, and what execution strategy is appropriate.

our approach

We agreed the future years and alternative portfolio compositions with the client at the start. Using the client’s hourly demand profile, we then analysed each scenario with more or less wind and solar PPA across a large set of historical weather years.

the outcome

The analysis set out fair PPA prices by price area for future years and quantified how price risk differs between sourcing approaches. Weighed alongside other sourcing considerations, this gave the client a clear view of the strengths and weaknesses of each approach and advice on the best way forward.

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