Throughout 2014, the market saw energy demand fall owing to the warmer weather and the increased renewable energy generation. The oversupply meant that power prices fell over Christmas and the New Year. However, as margins are ever reducing on the generation side, it is important to squeeze more value out of PPAs for the developer, regardless of the current market position, and this is where embedded benefits offered alongside the electricity price prove their worth.
In the present market, the purchase rates offered by electricity supply companies can often vary by as much as 30 per cent, making the marketing of the PPA through an independent broker a necessity for any developer looking to maximise their returns form a project. A 1p/kWh improvement on a PPA for a 500kW turbine, can equate to £15,000 per annum and so it’s vital that landowners and developers seek third party advice on setting up the initial PPA or negotiating its renewal.
Through the variety of technologies and combined generating capacity of the sites Carter Jonas offers to and trades within the market, we often achieve enhanced rates over those afforded to individual landowners. This brokerage service is geared towards maximising the returns available to landowners on their renewable energy schemes.
For the majority of renewable energy generators, the FiT is the primary focus. However, by using an agent or broker with a detailed knowledge of the market and who may be marketing a portfolio of mixed technology sites, there is an opportunity to negotiate an enhanced revenue stream for clients through a route which many will be unaware exists.
Timing is key as most contracts are renewable on an annual basis and suppliers often try to secure renewals directly with developers. There is also the opportunity to review the import supply to a property at the same time and ensure a competitive supply rate is being offered.