Posted on April 9, 2021 in
Written by: David B. Honig
Luca held senior management positions at Axpo Trading (2007-2017) for 10 years. He has structured and managed renewable energy agreements of more than 2,000 MW. Luca has an MA in International Politics and Governance from the University of St. Gallen. A new European standard electricity contract will provide proven credit risk measures for enterprise power purchase contracts (AAA), accelerate the growth of multi-offtaker projects and boost PPA activities across Europe, Jan Haizmann, chairman of the legal committee of the European Federation of Energy Traders (EFET), told New Energy Update. This last point is particularly important. “Long forms” are essentially models of contracts developed by the utility companies themselves. This makes sense because some utility companies have been making PPPs for many years. They therefore have their own know-how and defined criteria for the implementation of AAEs. They also have their own internal legal teams. We think the proposal is very well formulated. It is flexible and makes it a document that can be adapted to the specific needs and context of a given agreement. In addition, Luca believes there is potential for streamlining PPAs.
This should make AAEs less complicated and reduce transaction costs. To that end, we assume that this is a financial agreement for a 10-year delivery period, with the volume set at 75% of the capacity without a ceiling. The agreed price formula is the hourly wage of EUR 40/MWh. The count is monthly with compensation excluded. Last month, the European Federation of Energy Traders (EFET) launched a new standard enterprise energy purchase contract (CPPA) aimed at reducing transaction costs and speeding up contract negotiations for energy projects. The good thing about the new EFET model is that it takes into account the three key factors in determining the risk profile of a party to AAEs, namely volume, fixed price and sliding price. Woolworths joins the RE100 Global Renewable Energy Initiative woolworths Group is committed to … The Cornish Lithium project in the UK Cornish Lithium to promote the Trelavour project after successful tests Estimated cost of capital for UK solar installations by contract type The new model, published by EFET in 2019, reflects the needs and concerns of producers and companies conducting long-term transactions.