These are both challenging and exciting times for renewable generators in the UK.
Although the cost of renewable assets continues to decrease as technological innovation increases, the regulatory and commercial environments for renewables have come under fire with incentives such as Levy Exemption Certificates (LECs) removed and embedded benefits for distributed assets under pressure.
There is, however, a silver lining. There are promising opportunities on the horizon with the emergence of flexibility as a key value driver and the creation of new commercial arrangements brought about by the ongoing fundamental changes across the UK energy market. To address these challenges and capture the opportunities they present, Reactive Technologies (RT) and Total Gas & Power (TGP) have created a technology-led, Enhanced Power Purchase Agreement (PPA) that not only offers solar generators the most competitive power prices through advanced imbalance management and improved forecasting but will also provide them access to, and optimise them across, all available market opportunities.
RT and TGP have already demonstrated their PPA’s ability to reduce the cost of traditional PPA offtake agreements and deliver enhanced value to solar generators by successfully securing a multi-year 310MW p.a. solar PPA in a highly competitive tender.
Dr Jens Madrian, CCO at RT, comments; “Reactive Technologies are proud to be collaborating with Total Gas & Power to offer solar generators our innovative Enhanced PPA that tackles the intermittency issues arising from renewable assets while delivering significant additional value for the off-taker and the customer. In the coming months, Reactive will continue to innovate and expand the scope of the PPA to encompass additional high value flexibility services for renewable asset owners.”
RT and TGP’s Enhanced PPA is a result of their industry-leading framework agreement formed in July 2017. It is the first framework of its kind between an off-taker (TGP) and a Flexibility Agent (RT). The role of Flexibility Agent is a new one in the industry and sees RT utilising its cloud-based optimisation platform Tradenergy® to reduce imbalance exposure which results in improved power prices for generators. This, coupled with TGP’s route to market platform and user-friendly online customer interface, means solar generators not only get better value for their generation, but also receive an excellent user experience.
Nick Hodgson, Head of Embedded Generation at Total Gas & Power, comments: “Working with Reactive Technologies to achieve this innovative solution has ensured added value for solar generators and enhanced our imbalance management ability. With the capacity of intermittent generation in the UK growing, this collaboration between TGP and RT will no doubt assist renewable developers and grid operators alike.”
Together, RT and TGP are working to enable a green energy transition by improving the return on investment for renewable generators. If you are a solar generator and would like to find out more about how our Enhanced Solar PPA can benefit you, please reach out to us.