TL;DR
A new market for Standardised Wholesale PPAs is emerging, designed specifically for traders and proprietary desks, offering what traditional, long-term PPAs could not: liquidity, speed, and price discovery.
- The new PPA: These contracts are short-tenor (e.g., Cal 26, Q1 2026), traded via RFQ on enmacc, and settled (physically or financially) against a transparent index that reflects forecasted solar and wind output (the enwex index).
- Why traders are moving fast:
- Profit: Early adopters are seeing wide bid-offer spreads (e.g., €5+/MWh) that will compress as the market matures.
- Flexibility: They involve no long-term exposure or heavy credit commitments.
- Strategy: Traders can execute model-driven views by taking outright positions, trading capture rate spreads (Solar/Wind vs. Baseload), or exploring Solar vs. Wind optionality.
- First-mover edge: This is a rare window of opportunity for analysts and quants to turn structured views on weather and capture rates into profitable, executable trades before rising liquidity tightens pricing.
A new market is taking shape. Not on an exchange. Not in a bilateral negotiation room. But in the real-time quoting of solar and wind contracts that settle like baseload and peakload, with one key difference: they reflect renewable generation.
For the first time, proprietary trading desks can take structured positions on the expected value of renewable output. They can quote both sides of the market, trade spreads, or go outright long or short on solar or wind. And they are doing it without owning a single asset.
It is not just a new market for traders. It is also a rare moment for analysts and quants to bring forward structured views and turn them into executable trades. When market structures shift and liquidity begins to form, it is those who move quickly that define the playing field.
Welcome to the era of Standardised Wholesale PPAs.
Contents
Why is this not your average PPA?
Traditional PPAs are long-term, highly bespoke, and credit-intensive. They work well for developers and offtakers looking to secure multi-year commitments. But they do not work for traders.
Standardised Wholesale PPAs are different:
- Short-tenor (Cal 26, Cal 27, Q1 2026, etc.)
- Traded via RFQ on enmacc
- Physical or financial settlement
- Indexed to forecasted solar and wind output (via the enwex index)
They offer what most PPAs never could: liquidity, speed, and price discovery.
What makes this attractive to prop desks?
The structure alone is attractive. But here is what is really driving early adoption among prop traders:
- Wide bid-offer spreads: Some desks are quoting both sides and seeing €5+/MWh spreads
- No long-term exposure: Trade Cal 26 or Cal 27 with a few clicks, no credit team required
- Model-driven pricing: Traders with internal views on capture rates or weather volatility can act on them directly
- Optionality: Go outright, build spreads, or explore solar versus wind trades
This is not just a hedging tool. It is a new instrument in the trading stack.
What prop traders are doing now
Some early liquidity providers have already traded the first standardised PPAs on enmacc. Here is what they are quoting:
- Single-leg positions on Cal 26 Solar, based on bullish views on output value
- Capture rate spreads by trading solar or wind against baseload
- Two-way quotes to take advantage of the current spread
None of this requires physical delivery. And yet, all of it maps to real market risk.
How to get started
- Log into enmacc and select solar or wind as the product
- Define the delivery period (e.g. Cal 26, Cal 27, Q1 2026)
- Choose financial or physical settlement
- Send RFQ
You can also trade spreads by including a baseload leg for a value hedge.
Why this matters now
In a few months, spreads will compress. More liquidity will mean tighter pricing, and early edge will fade.
But right now, the market is forming. And those who get in early not only trade profitably, but they also help define what this market becomes.
If you are already trading peak versus base, now you can trade solar versus base. If you have a weather model, you have an edge. If you are an analyst with a directional view on capture rates, now is your moment.
This is a rare window of opportunity. And the first trades are already live.
