LevelTen Energy flips the switch on global PPA marketplace


LevelTen Energy has formally launched the world’s first global liquid marketplace for power purchase agreement (PPA) offers.

Now, European-based renewable energy buyers have access to a searchable database of live solar and wind project offers and the same risk analytics that LevelTen’s North American users have had access to since 2017, Jason Tundermann, vice president of business development at LevelTen said.

For corporates with a global footprint, there is now a single place to view and compare the risk and value of each PPA available in North America and Europe, he added.

To spearhead this next phase of its European expansion, LevelTen has hired Flemming Sørensen, an industry veteran with 20 years of experience who most recently served as Ørsted’s head of PPA origination. “Having been a corporate buyer, I experienced firsthand how difficult it is to procure renewable energy, especially in different countries, each with their own market dynamics,” said Sørensen, LevelTen’s new vice president of Europe in Madrid.

In addition to launching the PPA buyer interface for Europe, LevelTen is rolling out CFO-Ready Analytics, an analytical tool that European buyers can use to see how an PPA offer on the LevelTen marketplace is projected to perform under a range of potential future scenarios. With CFO-Ready Analytics, buyers can instantaneously compare the risk and value of each PPA available, Tundermann explained. LevelTen also makes third party curves for the wholesale market available to buyers on its marketplace.

“We want to provide buyers with all of the data available so they are fully informed and feel confident making a decision,” Tundermann said. Buyers and channel partners are also able to view independent forecasts produced by experienced wholesale energy experts, he added. For liquidity to improve, the industry needs standard tools that can advance risk management, enhance efficiency and lower transaction costs, LevelTen said. Developers also need to be able to see demand signals, it added.

To date, renewable energy development is Europe has been fueled by government subsidies like feed-in tariffs, but many of those programs are starting to be phased out. The voluntary procurement market can help fill this gap because many corporates want to help combat climate change, Tundermann said.

Business demand for renewables is already a driver of new renewable energy investments in Europe, largely because corporate buyers are trying to meet their 100% renewable electricity commitments. Additionally, utilities are looking to procure renewables because they are often cheaper than fossil fuels.

According to RE100, corporate PPA activity tripled in Europe between 2014 and 2019. About 40% of RE100 members are headquartered in Europe, and BloombergNEF estimates that globally RE100 members alone are set to stimulate global investment in renewables worth E90 billion during the next decade.

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