Electricity market modeling and the corresponding electricity price forecast are fundamental parts of your commercial analysis of Power Purchase Agreements (PPA). It would help if you had those price forecasts to understand your future costs related to PPAs better. In this context, it is crucial to understand the potential drivers of electricity markets and the interaction between different power markets.
Furthermore, it is necessary to comprehend these models' input parameters and the method used for calculating these price forecasts. Those aspects represent the core of our excel-based workshop which enables you to understand third-party power price reports correctly and choose the best data for negotiating the optimal structure of your Power Purchase Agreement.
The electricity price forecast is one of the most important input parameters in your financial model, having an enormous impact on PPA prices and PPA structures (e.g. pay as produced vs. fixed volume). However, only using forecasted prices without understanding the method behind those calculations induces a higher model risk and a higher risk of misleading decisions.
Our excel-based workshop perfectly prepares you to handle power price reports from third-party advisors and run your internal model. Through the gained knowledge, you will create a more robust business case in negotiations with your PPA counterpart and capital providers like equity investors or banks.