AFRY and software and advisory company Pexapark have entered a partnership to develop the market’s first ‘Daily Valuation Curve’, providing renewables investors, developers and portfolio owners with a consistent valuation framework for renewable energy investments.
The new offering, combining Pexapark’s short-term renewable energy Power Purchase Agreement (PPA) valuations and AFRY Management Consulting’s fundamental price curves, will be designed to give renewable energy investors and their lenders a consistent valuation across all investment tenors.
Overseen by an expert committee of the two organisations, this standardised ‘blended’ product will capitalise on the strengths of both trusted methodologies. It will create a much-needed, consistent valuation framework, providing greater certainty to renewable energy investors navigating market volatility and driving forward the energy transition.
"To effectively value their renewable energy assets and manage risks in this new volatile world of energy trading, investors need to look both within the 10-year time horizon and beyond. Market-based and fundamental pricing methodologies are not at odds with each other, but to date the industry has simply lacked a clear framework for ‘joining the dots’" says Luca Pedretti, COO & Co-Founder of Pexapark.
"We are excited to pool our strengths, capabilities and passion to address this challenge for AFRY and Pexapark customers, and provide a trusted, versatile and convenient solution that helps investors, banks and lenders focus on their core business of financing, developing and operating renewable energy projects" says Dr. Jan Wierzba, Senior Principal, AFRY Management Consulting.
The ‘Daily Valuation Curve’ offering will first be made available to selected AFRY and Pexapark clients, before it is rolled out more widely to AFRY Independent Market Report clients and PexaQuote platform users in Q1 2023.
Pexapark is an award-winning enterprise software and advisory company, specialised in renewable energy.
AFRY Management Consulting works globally on market design and provides commercial analysis, strategic and operational advice for private investors and operators. With experience of a wide range of global electricity markets, AFRY Management Consulting experts possess a deep insight into the merits of alternative electricity market designs.
