Energy exchange platform for PPAs standardized with some flexibility

Procedures leading to the establishment of an Energy Exchange platform hosting green-energy power purchase agreements (PPAs) have restarted following a short break of a few weeks.

Though still at a preliminary stage, the procedure has already indicated that the PPA platform being prepared by an energy exchange working group will offer largely standardized terms as a means of fostering agreements, especially during the platform’s early stage, while also offering some degree of flexibility, as too much rigidity could hamper agreements.

As a next step, the working group intends to focus on two other key aspects, one concerning aggregation details and the other whether bids submitted should be binding or not. Further ahead, tools related to risk management and clearing capability will be looked at.

The energy exchange’s leadership, newly appointed, is now examining a related recommendation delivered by Grant Thornton, serving as the exchange’s consultant on the new platform.

The energy exchange is also looking at comments and observations provided by participants of a related consultation procedure staged by RAE, the Regulatory Authority for Energy.

In addition, the energy exchange is preparing to distribute a questionnaire to prospective PPA platform participants, the aim being to cater to market needs as best as possible.

Once finalized, the PPA platform must be approved by RAE. If given the green light, the energy exchange’s administration will need to proceed with the search for an information system provider, a major stage in the process of setting up the PPA platform.