• Chara Georgiades, Senior Data Analyst, inspiratia
The Nordics continue to show huge potential for onshore wind, boasting impressive resources and declining capex costs. This has driven deal volumes to historic highs, with corporate and industrial offtakers making up for the market’s loss of subsidies. The Nordics are already home to the world’s longest and largest corporate wind energy PPAs, but with several larger developments set to be financed, the region looks set to break its own records in 2019.
Corporate PPAs have proven to be critical revenue stabilisation mechanisms in the rollout of new renewable energy capacity in a post-subsidy world. The next step will be to open up the market to smaller offtakers with lower credit ratings via aggregation structures, while some investors will seek out deals with merchant elements in a bid to eke out higher returns.
Luca Pedretti, COO & Co-founder, Pexapark
• Isabel García, Chief Sales and Energy Solutions Officer Engie Spain, Engie
• François Belair, Group Energy Buyer, Lactalis Group
Spain and Italy represent the bedrock of Europe’s subsidy-free markets with multiple gigawatts of capacity financed in 2018, and expectations of a similar scale to come in 2019. The dynamics are somewhat different to the Nordics, with fewer corporate offtakers but a greater role for utilities and traders – while certain projects are being structured on a pure merchant basis.
Matt Brown, Energy Vice President, Western Europe, Middle East and Americas, Pöyry Management Consulting
Gigawatts of new subsidy-free projects will require billions of euros of capital. With PPA counterparties limited, investors and banks will increasingly be exposed to merchant risk, with new structures likely to emerge to shield them from market volatility.