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ane.energy and EDF Trading develop innovative PPA hedging product

ane.energy and EDF Trading develop innovative PPA hedging product

  • Virtual Power Purchase Agreement (PPA) hedges volume and price risks
  • Solution is already successfully traded in the OTC market
  • Market-based product supports economic continued operation of post-EEG plants

Energy traders ane.energy and EDF Trading have jointly developed a new trading product to hedge the main risks arising from Ü20 wind power contracts. It is a virtual power purchase agreement - an instrument to hedge the nationwide hourly wind or solar production on a forward basis. This enables aggregators to hedge what is known as the “cannibalization effect” of renewables. The hedge is so variable and scalable that operators can decide how much they want to hedge.

The trading volume of renewables in the market is steadily increasing, which significantly increases the volume and price risk for marketers - but also for each individual plant operator. These risks need to be carefully managed and PPAs can offer significant market value and price risk security in the longer term.

"How will the market values of nationwide onshore wind farms develop in the long term, for example as more turbines are added? For those who cannot or do not want to answer this question, our hedging product should be of utmost interest," explains Ralf Höper, Managing Director of ane.energy. "This product gives plant operators the ability to actively risk manage their asset" adds Dr. Stefan Schlüter, Head of Origination Germany, at EDF Trading.

EDF Trading and ane.energy have already actively traded the product on the OTC market.

Exceptional partnership

ane.energy, a newcomer to energy trading and EDF Trading, an international energy market specialist, are ideal partners: ane.energy operates close to the operators and specializes in digital services and short-term trading in renewable energies. EDF Trading brings a strong creditworthiness and international trading expertise with a long-term perspective: "We are working together to achieve the goal of enabling the continued operation of de-subsidized plants in an economically viable manner. Otherwise, we will not achieve the climate targets we have set," says Höper. "With our expertise, we provide solutions for fluctuating resources," adds Dr. Schlüter.

About ane.energy

Since its founding, ane.energy's stated goal has been to focus on the network idea and turn producers into shareholders. The company integrates sustainable energy generation and offers innovative solutions for marketing renewable energy as well as energy management services. Digital solutions such as its own virtual power plant and a real-time trading system are at the forefront. With around 2,200 MW, ane.energy is already one of the largest independent marketing platforms for renewable energies in Germany in direct marketing.

About EDF Trading

EDF Trading is active in power, gas, emissions, green certificates, LPG, oil and LNG (through JERA Global Markets).  EDF Trading is a leader in the European wholesale energy markets for power and gas. EDF Trading is a wholly owned subsidiary of EDF SA., one of the world's largest power producers and a leader in low-carbon production.

For more information, please contact:

ane.energy, Otto-Hahn-Straße 12-16, 25813 Husum
Managing Director: Ralf Höper, Tel.: +49 171 3857273, E-Mail: ralf.hoeper@ane.energy

EDF Trading Limited, 80 Victoria Street, London
Head of Communications: Michele Reid, Tel: +44 20 7061 4232
E-Mail: michele.reid@edftrading.com