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'Not enough corporate PPAs to go round', says BVG

HAMBURG 2018: Windpower TV spoke to Neil Douglas, director at BVG Associates about tenders and auctions.

Douglas noted that "the increase in tenders for procuring wind energy projects in auction systems across Europe and the world are having a big impact in the way people are going about their project development."

He said manufacturers must consider the effect of auctions when designing turbines, while developers must pay closer attention to risk in the new system. Douglas added: "The industry is still reacting to an era in which most markets are being driven by auctions, but in many cases we’re starting to see people look beyond that."

Such mechanisms include corporate power purchase agreements (PPAs), he said. "There aren't enough corporate PPAs to go around, but certainly mechanisms that give a route to market give some price stability without seeking subsidy through action or otherwise seem inevitable."

He added that long-term wholesale electricity prices in Europe will also affect pricing in the future: "Prices in Europe seems remarkably stable, but time will tell if that’s the case. If we see a substantial shift in the price of wholesale electricity then the cost of onshore and offshore wind only improves." 

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