LevelTen Energy says it will offer power purchase agreements (PPAs) through a series of renewable energy auctions.
LevelTen Energy says it will offer PPAs through a series of auctions, with the aim of making such deals faster and easier to finalize.
PPAs typically take 12 months to execute, and the longer the process, the higher the risk of deal failure, according to LevelTen. In 2022, 20% of PPAs being negotiated failed to materialize, based on a survey of European developers.
Seattle-based LevelTen aims to streamline the PPA process by connecting experienced developers and motivated buyers. Developers can initiate a PPA auction by working with LevelTen to establish PPA terms that align with current market conditions.
LevelTen’s network of buyers, including corporations and energy advisors, will have access to the PPA offerings. Developers can also invite their own buyer networks to participate.
Buyers show their interest by submitting an offer, along with key details like credit rating and PPA experience. The entire process, as forecasted by LevelTen Energy, takes about 12 weeks.
Once an offer is selected, the parties can proceed to close the deal. Disagreements over price and contract terms were cited by developers as the main reasons for failed deals, according to Flemming Sørensen, vice president Europe for LevelTen Energy.
In 2022, European companies contracted 6.6 GW, equivalent to 11% of new solar and wind capacity. LevelTen’s platform, including the LevelTen Energy Marketplace, offers access to over 4,500 power purchase agreement price offers across 28 countries in North America and Europe.
This post appeared first on PV Magazine.