Flexible asset PPA capacity and competition increases: The Power Purchase Agreement (PPA) market for flexible assets* in the last six months has grown in size and seen increased levels of competition as new off takers and optimisers make themselves known in the market.

 

Based on Capacity Market (CM) agreements, there is ~4.8GW of flexible capacity operational at present. However, the true value is closer to 7GW when you include assets without live CM agreements.

 

Cornwall Insight’s Flexible asset PPA market report shows that of this, ~4GW is under some form of third party PPA, spanning almost 20 different off takers that are now active in the market.

 

Tim Dixon Wholesale Team Lead at Cornwall Insight said:

 

“The amount of flexible capacity under a PPA is set to rise. Capacity has increased in line with the plant that has secured future CM agreements, as well as the need to complement the growth in intermittent renewables.

 

“We have seen from recent CM auctions a large amount of gas and battery storage plant in development. Many of these will be seeking a third party PPA. Cornwall Insight’s research shows that 20 off takers are now active in the flexible PPA market, with at least a further five independent flexibility providers also providing some form of service.

 

“It is unsurprising that as the capacity of flexible assets and the number of off takers has risen, activity in the PPA market has picked up. The rising number of off takers has created a competitive and dynamic market. This has led to more competitive pricing levels in PPAs.”

 

*Flexible assets – front-of-the-meter gas and diesel engines, battery storage, open-cycle gas turbines and combined heat and power plants.

Flexible asset PPA capacity and competition increases – Post Kindly Provided by Cornwall Insight

, , , , , , , , , , , , , , , , , , , , , , ,
Previous Post
20% drop in weekday Irish electricity demand
Next Post
COVID-19 impacts: Energy demand and emissions

Related Posts

65% of Londoners changed their vehicles for the ULEZ 

65% of Londoners changed their vehicles for the ULEZ: Motorbike insurer Bikesure, recently surveyed 1,000 commuters in London to find out how the Ultra Low Emission Zone (ULEZ) has impacted them, in reflection of Bikesure’s annual ULEZ Survey, the first being conducted in 2019. Even though the ULEZ has been temporarily suspended to support key…
Read More

Nuclear energy industry ‘is a complete scam’

Nuclear energy industry ‘is a complete scam’, Co-Founder of Forum for the Future Jonathon Porritt, has made the bold claim. He commented in a recent interview that nuclear power was “unbelievably expensive” when referring to both traditional nuclear infrastructure and emerging technologies such as small modular reactors (SMRs) and said it was “preposterous” that the…
Read More
Menu

Subscribe to our newsletter!

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

British Utilities will use the information you provide on this form to be in touch with you and to provide updates and marketing.