Pexapark has partnered with forecasting software provider ConWX to offer power and weather modelling data to its renewables industry clients.
Developers, producers and investors will be able to “swiftly quantify” the value of new wind and solar asset investment opportunities, said Pexapark.
They will also be able to identify with “pinpoint accuracy” the power purchase agreement (PPA) prices a project can achieve based on location and technology type, allowing fairer pricing for the sale of assets.
The partnership also introduces the capability to “optimise PPA structures based on local conditions”, said Pexapark.
Pexapark’s market pricing analysis revealed that high production yields are not the only basis for choosing an optimal site location.
The growth of renewables introduces a cannibalisation effect that can reduce potential prices. This means that sites that may have an identical wind or solar yield can perform very differently from a commercial perspective.
Pexapark stated: “This wide variation highlights why it is important for developers and asset owners to understand how local weather conditions correlate with market pricing and cannibalisation – and, in turn, influence the true long-term value of a renewable energy project.
“By using meteorological and pricing data to identify the very best locations and optimal PPA structures, stakeholders can manage these risks and maximise the revenue potential of their new projects.”