LevelTen Energy recently launched a power purchase agreement auctions platform, saying the new offering is “a response to the industry’s need for new solutions that can keep up with today’s market conditions, including surging demand for PPAs.”
Noting that PPAs take 12 months to execute on average, LevelTen said its PPA Auctions shave off months from average contracting timelines by streamlining the process. “Furthermore, PPA Auctions are designed to increase the certainty of deal success while delivering advantages to both the seller and buyer.”
LevelTen said the process works as follows:
- Developers initiate a PPA Auction by engaging LevelTen to review their project and jointly outlining desired PPA terms that accurately reflect current market conditions, including volume and contract structure.
- LevelTen markets the PPA to its buyer network. Developers can also invite their network of buyers to participate.
- Buyers participate by submitting a notice of interest, reviewing the PPA terms, and submitting a bid along with critical details, including their credit rating and PPA experience.
LevelTen said it has piloted several PPA Auctions that have yielded attractive bids and shortened the time it takes to arrive at term sheet negotiations.
