The First Global Renewable Trading Platform

Project Information

Pexaconnect

Grant agreement ID: 866950

DOI

10.3030/866950

Project closed

EC signature date 5 April 2019

Start date 1 May 2019

End date 31 August 2019

Funded under

• INDUSTRIAL LEADERSHIP - Innovation In SMEs

Total cost

€ 71 429,00

EU contribution

€ 50 000,00

Coordinated by

PEXAPARK AG
Switzerland

Periodic Reporting for period 1 - Pexaconnect (The First Global Renewable Trading Platform)

Reporting period: 2019-05-01 to 2019-08-31

Summary of the context and overall objectives of the project

In the transition from an energy tariff-based market to an open market, Power Purchase Agreements (PPAs) have emerged as an effective new route to finance renewable energy assets. However, establishing PPAs is quite complex and time-consuming for both renewable energy producers and buyers, resulting into high search and transaction costs, as well as the inference of 3rd parties (lawyer firms, banks, insurers, etc.).
Thereby, in a market that is increasingly volatile, non-transparent and uncertain, renewable investors are in need of practical solutions to help them reduce cost frictions, manage revenues and asses risks. Pexapark aims to facilitate the global shift towards a more sustainable energy future through its pioneering PPA trading platform: Pexa®connect. We expect that our services will contribute to the promotion, transparency and financing of renewable energy assets, by assuring funds and minimizing risks for the producers and providing price security and visibility to the buyers.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

Technical upgrades have been defined and scheduled in an 18-month work plan, including testing and validation stages. Commercial strategy has been confirmed based on the end-user´s needs of long-term revenue/price certainty, the new regulatory framework and the absence of both direct competitors and conflicts with IPR. We performed a risk assessment to make sure that the most relevant risks are identified and set a contingency plan. We also validated participation in related-events and communication strategy to attract new clients and partners. Revenue streams, pricing and cost revision were established, resulting in a business opportunity for Pexapark of 5-year estimated profitability of 14 M€ (ROI = 3.02) and 129 new employees.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

Our innovative platform introduces a new business model that accompany our clients through the entire PPA process and offer them for the first time an all-in-one solution to take control of their assets. We have developed standardized applications that entails a clear step-ahead to simplify the trading activities of participants, e.g.: (i) Advisory, to establish a strong investment profile, (ii) Transaction, to support contract structuring and (iii) Analysis, by monitoring and managing revenues and risks. We believe that Pexapark will facilitate more efficient PPAs which should increase velocity and liquidity of the market. The end result should be better pricing, less expense and more capital for the construction of renewable assets.

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