TL;DR
This guide introduces enmacc’s Standardised Wholesale PPA feature, designed to help traders efficiently hedge the capture rate risk and price volatility of German solar and wind projects.
- Single-leg PPA (direct hedge): You can lock in a fixed price for future solar or wind production to mitigate exposure to falling market values. This is done by creating an RFQ (Request for Quote) specifying the physical profile, delivery period, capacity, and desired price.
- Clean hedge (advanced strategy): This involves trading a two-leg spread between a renewable profile (e.g., wind) and a standard baseload product. This technique isolates and hedges the capture rate itself (the discount of intermittent power relative to stable baseload), allowing for a precise view on asset performance.
- Execution: The platform converts complex offline negotiations into a digital workflow, allowing traders to receive competitive quotes from counterparties and execute trades confidently when prices (including the spread price) meet their hedging criteria.
For professionals in the renewable energy sector, managing capture rate risk from solar and wind volatility is a critical challenge to predictable revenue generation. Our new Standardised Wholesale PPA feature directly addresses this, transforming market complexity into a streamlined trading process.
This guide outlines how to effectively use enmacc for hedging German solar and wind profiles, covering both direct price locks and sophisticated spread trades, all within a single platform.
Contents
Hedge solar price risk with a single-leg PPA
Your objective is to secure a fixed price for future production to mitigate exposure to falling capture rates. Here’s how on enmacc:
Key steps include:
- Specifying physical delivery for your chosen solar (or wind) profile.
- Defining the balancing zone and contract period.
- Inputting your desired capacity and price proposal.
- Setting the tender duration and selecting relevant counterparties for your request.
Once submitted, this request goes live in the market, enabling you to lock in a price.
Manage capture rate risk with a clean hedge
While a simple price lock is effective, a “clean hedge” offers a more advanced strategy. This involves trading the spread between a renewable profile and a standard baseload product. Its primary benefit is the ability to isolate and hedge the capture rate itself, the value differential between intermittent renewable energy and stable baseload power. This is a precise tool for taking a specific view on the performance of renewable assets.
On enmacc, you initiate this through a two-leg spread trade:
- Define the first leg for your renewable exposure (e.g., wind).
- Define the second leg for your baseload hedge.
- For each leg, specify the balancing zone, delivery period, load type, quantity, and price proposal.
- Set the overall tender parameters and select your desired recipients.
Respond to RFQs and execute
Upon submission, your Requests for Quote (RFQs) will generate responses from counterparties. As the portfolio manager, you will then review these incoming quotes for execution.
- You’ll receive offers for both your single-leg PPA and your spread trade.
- If a quoted price aligns with your objectives or hedging criteria (e.g., a negative spread price representing the renewable profile’s discount relative to baseload), you simply execute the trade.
Want to see it in action? Watch our full tutorial video on trading Standardised Wholesale PPAs on enmacc:
Our Standardised Wholesale PPA feature converts complex, traditional offline negotiations into a transparent, liquid, and efficient digital workflow. This enables the rapid creation of RFQs for solar or wind projects, the procurement of competitive quotes, and confident trade execution.
To explore these functionalities, log in to enmacc or contact your dedicated account manager for a personalised demonstration.
