Our customer has two wind farms and three solar parks at different locations across England and Scotland. These have a combined expected export of just over 20,000MWh (20 million kWh). We first placed PPAs in 2021, moving the client onto fixed contracts which offers increased earning through Transmission and Distribution “embedded benefits”. In year one we thus achieved an increased earnings of £68,000 / 6%.
As has been well documented, energy prices increased significantly though 2021, fuelling the post-Covid recovery. We reached truly unprecedented levels in early 2022 when the conflict in Ukraine began. Whilst higher costs adversely affect all energy consumers, it represents a huge opportunity for exporters. We thus placed the PPA renewals, offering increased earnings of over £2m, almost 200% up on the previous contract value. Whilst the increased earnings has of course been driven by wholesale power, there are other considerations we have addressed with the supplier, particularly increased Balancing Services costs – as export generation increases, so we have to be conscious of increased costs to balance the grid which have varied dramatically as more and more diverse and intermittent forms of generation are added. Through ongoing supplier support we are able to optimise contract fixes in relation to wholesale, but also regarding other hidden costs.