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Reported by RES on 16 October 2018

RES signs Utility PPAs with UNIPER on two French TRIG-owned wind farms

Optimisation of existing PPAs

(Courtesy of Renewable Energy Systems Limited)

As TRIG’s asset manager for a number of wind farms in France, RES has secured a substantial value upside on two wind assets (Haut Cabardès, 20.8 MW and Haut Languedoc, 29.9 MW) by optimizing existing PPAs. Two fixed-price PPAs have now been signed with the energy utility, UNIPER, on two tranches for a total of 18.2 MW, replacing the French FIT as of 1st Jan 2019.

RES has conducted the entire operation, from the initial value identification for TRIG, the launch of a competitive tender with several aggregators representative of the market, the contract negotiation assisted by De Gaulle Fleurance, the lender and owner approvals, to the signing of the two PPAs with UNIPER with fixed prices (including guarantee of origin and capacity certificates) for the next 3 years, securing the value uplift.

The French wholesale electricity prices have risen significantly during the last few months essentially due to an increase in carbon prices, explained by the quota reform (future prices for 2019 are now around 60€/MWh). This market tendency was identified by RES as being an opportunity to sign these agreements with UNIPER.

Renaud Chevallaz-Perrier, Director of Operations for RES on the French market announced: “This is a great example of how RES’s excellent knowledge of the French energy market adds value for our asset-owning clients. This new contract reinforces the long-term vision of our partnership with TRIG”.

Richard Crawford of InfraRed Capital Partners Limited, Investment Manager for TRIG, added: “This contract achieved by RES adds to the quality of TRIG’s portfolio revenues by providing a period of fixed prices at a level which enhances the value of the Company’s assets”.

Alexandre SOROKO, Business Development Manager for UNIPER, declared: “We really appreciated working with RES and have demonstrated that it was possible to secure contracts at competitive prices in a market environment that remains extremely volatile”.

Sylvie PERRIN, Partner of De Gaulle Fleurie and Associates, legal counsel for RES, added: We are very happy to have accompanied RES on their first French PPA, following the end of the feed-in tariff. This type of project prefigures tomorrow’s electricity market ».

References

[1]

Renewable Energy Systems Limited. Press release - RES signs Utility PPAs with UNIPER on two French TRIG-owned wind farms. URL: http://res.mynewsdesk.com/pressreleases/res-signs-utility-ppas-with-uniper-on-tw.... [Date Accessed: 16/10/2018].

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