GENERATION SERVICES

Generation Services

With significant experience in structuring generation contracts (commonly known as Power Purchase Agreements or “PPAs”), our consultants are ideally placed to engage the market on your behalf and provide guidance on how you can deliver on your long-term financial commitments

SMARTER ENERGY CONSULTANCY

Maximise your renewable assets revenue

Contracting your output can be complex, which is why we are here to support you every step of the way.  Browse through the services we offer to generators by clicking on the area of interest below:

Speak to the experts

Maximise the income from your renewable generation asset by ensuring you have a PPA in place that is fully optimised for your requirements.


One of the main decisions you will have to make is whether to take a fixed or flexible price for your output. Careful consideration should be taken, focusing around your own financial commitments, expectations from your lender, the length of time you would like price security for and your risk appetite.


You can find out more about the products and revenue streams available to you below. Once you've had an opportity to review these, our consultants can help guide you through your product choice, explain the risks and opportunities of each and help you make an informed decision to maximise your revenue opportunities.

Understand your risk appetite and exposure

Knowing when to fix the price for your energy is fundamental in achieving the maximum return on your asset. 


Nobody has a crystal ball, but downside risk can be mitigated through understanding market liquidity and having an appropriate hedge strategy in place.


Generators must also have confidence in the credit strength of their offtaker as they carry large credit exposures against an offtaker default. Careful consideration of your Settlement Exposure (SE), and Mark-to-Market (MtM) risk should be undertaken against a balanced view of your offtakers probability of default. It is possible to insure this risk, which you can learn more about under our Credit Risk and Insurance services here.


Speak to one of our experts to help steer you through the do’s and don'ts of risk management.

Understanding your contract

Ensuring you understand your offtakers Terms and Conditions can save you a lot of hassle and money over the lifetime of your contract.


Offtakers typically word these to try and pass their risks onto you, which can be costly if not challenged.  We understand the clauses offtakers use to achieve this and have successfully negotiated these clauses on behalf of our clients.


The most common clauses to ensure you understand relate to your forecasting requirements, volume tolerances, your share of embedded benefits, change in law, invoicing and any credit stipulations placed upon you that may require the posting of credit support or lead to contract termination.

Maximise your renewable certificate revenue

ROC prices have increased over recent years and there is much competition amongst offtakers to buy them. Given ROCs make such a valuable contribution to your business’s revenue, it is important you achieve the highest possible price. ROC pricing is a balance between delivery timescales, working capital and the margin which offtakers try and achieve. All these considerations need to be balanced against your own business requirements.


The market for REGOs and RGGOs is also very liquid with suppliers looking to pay healthy premiums to secure your certificates. The market for these Guarantees of Origin is in "contango"; meaning the further out you are willing to sell then the higher the price you will achieve.


Many suppliers are now starting to offer green electricity as standard, which has pushed up the price for your Guarantees of Origin. It also means that suppliers are looking to hedge their position out into the longer-term, which has driven up prices further out into the future.


Be confident you are getting the best price for your renewable certificates and speak to the experts at Adalta Energy.

Know the market price

Do you know the price the current wholesale market is trading at? You could be better off moving onto a PPA product if the price is above your government-backed rate (currently £55.70/MWh).


We have daily market insight that can be used to show you the potential upside in moving away from the FiT scheme. If you decide this is the correct decision for your business, we can further assist in your product choice, hedge strategy and contractual negotiations.


Moving away from the FiT scheme could provide more revenue and options for your business, but it will add complexity. Let us talk you through the options, support you along the process and ensure your revenue is fully maximised.

Customer Journey

Ensuring a professional, bespoke and insightful customer experience is at the heart of what we aim to deliver at Adalta Energy. That’s why we set out our customer journey from the outset. Your experience is part of our 6-point plan:

Initial consultation

Hear more about the services we can offer and understand what you would like to achieve

Letter of Authority (LoA)

If you are happy for us to act on your behalf then we will need an LoA from you. Don’t worry, we can provide the wording, but you will need to copy it onto a document that includes your company letter head, sign it and return to us. This enables us to approach offtakers on your behalf, but not to contract on your behalf

Data gathering

Provision of half-hourly data is a good starting point, however, we will also need to understand your generation type, accredited capacity (MW), the location of your assets and any schemes you are accredited to e.g. Renewable Obligation. Offtakers typically use their own models to forecast your output, hence a thorough understanding of your portfolios technical details is paramount

Approach Offtakers

An Invitation to Tender (ITT) will be issued to the wider market and we will agree our fee to undertake this exercise

Analysis & Insight

Our expert consultants will analyse all offtaker responses and make a recommendation to you based on your initial requirements and any further insight that may have become available through the tendering process

Third consultation

To discuss our recommended offtaker with transparent quantitative and qualitative rationale. It is then over to you to sign the appropriate contract(s) with the offtaker, which we will facilitate

Depending on your preferences, our customer consultations can be undertaken face-to-face, via telephone and/or video conference.

Generation Products

Our consultants have spent many years working across offtakers Pricing, Product Development and wider Commercial teams so we are ideally placed to advise you on which product suits your requirements.

Ensuring you generate the maximum revenue from your renewable asset is fundamental to your investment in electricity generation. Contracting your output can be complex, which is why we are here to support you every step of the way. Listed below are the main sources of revenue from your generating asset(s), which we would be pleased to explore further with you.

  • Fixed

    A fixed price for the electricity generated is set over the contract duration. This allows the generator to hedge their price exposure. However, in a rising market (bullish), it may be possible to achieve higher returns from a Flexible contract

  • Flexible

    This allows the generator to make their own decisions on when and how far forward to sell their output (subject to market liquidity). Based on a forecast of the electricity generated, it is therefore possible to transact on multiple occasions within the market and achieve multiple price points. You can still hedge your price risk in a falling market (bearish) by selling forward your expected generation, thereby not putting your future revenue at risk

  • Embedded Benefits

    Energy suppliers benefit from buying your electricity as it reduces some of the industry costs they have to pay. This is known as an “Embedded Benefit”, which can be shared with the generator. The main benefits shared relate to Distribution and Transmission Losses and Transmission Use of System charges

  • REGO/RGGO

    These are the renewable Guarantee of Origin certificates that relate to the output from renewable generation. These can be sold to energy suppliers, who use them to evidence onward “green” supply to their customers and subsequently form a key part in their annual Fuel Mix Disclosure (FMD)

  • Feed in Tariff (FiT)

    Introduced in April 2010, the FiT tariff is a government subsidy scheme for the generation of renewable electricity for selected technology types up to a capacity of 5MW. It closed to new applicants from Apr-19, but those generators registered prior to that cut-off date will receive a payment of £55.70/MWh (indexed to RPI) for their generated output. If the wholesale electricity market is trading above this rate, then you could consider contracting your output under a PPA as a means to increase your revenue

  • Smart Export Guarantee (SEG)

    Introduced in January 2020, the SEG places an obligation on Licensees (typically energy suppliers) to pay generators for electricity exported to the grid for selected technology types up to a capacity of 5MW. Unlike FiT, there is no government subsidy and SEG Licensees are free to determine the rate they will pay, contract length and other commercial terms

  • Renewable Obligation Certificate (ROC)

    This scheme awards generators who were eligible and registered prior to April 2017 with certificates that can be sold onto energy suppliers. They are typically sold by generators either monthly or annually, which are redeemed by suppliers (annually) to meet the conditions placed upon them under the Renewables Obligation scheme

  • Contracts for Difference (CfD)

    Low carbon electricity generators can apply for the CfD scheme prior to starting construction of their asset. Generators contract directly with the Low Carbon Contracts Company (LCCC) and are guaranteed a price for their output over a 15-year time horizon. A “strike price” is agreed with the generator, depending on fuel, technology and date built. The generator is then paid the difference between the strike price and the “reference price” (day ahead market price)

Renewable Generation FAQs

  • What is renewable energy?

    Renewable energy is generated from renewable sources that will not be depleted during our lifetimes i.e. they naturally renew or replenish themselves.


    There are several ways to generate energy from these renewable sources, which include:


    1. Solar (from the sun)
    2. Wind (from wind)
    3. Geothermal (heat generated deep below the earths surface)
    4. Biomass (burning of plants or micro-organisms)
    5. Hydro (from harnessing the power of flowing water)

    Exciting new forms of renewable energy are also being explored.  Three of the most promising are Tidal energy, Wave energy and Algal (or algae) fuel. Algal uses the unique chemicals in seaweed to create a clean and renewable biofuel.

  • What is a Power Purchase Agreement (PPA)?

    A PPA is a contractual agreement between an energy buyer (often referred to as an “offtaker) and the seller (the generating party). The two parties will agree to buy and sell an amount of energy, at an agreed price, that will be generated by a renewable asset.


    A PPA is often of a long-term nature and secures price certainty for the generator for many years to come (not uncommon for these to be 10 – 20 years). This helps the generator secure/maintain funding for their asset and mitigates their price risk exposure.

  • What is a Corporate PPA?

    A Corporate PPA enables you to source sustainable electricity directly from a renewable generator at an agreed price, while giving generators a reliable, guaranteed buyer for their electricity at a stable price.


    In additional to sourcing your energy directly from a chosen generator, both parties can benefit from agreeing long-term commodity price commitments that protect them from market price volatility. It therefore allows you to agree commodity prices far beyond wholesale market liquidity.

  • Can I switch to a PPA from the FiT scheme?

    Yes, you can, and it may prove much more financially beneficial to do so.


    When wholesale electricity prices rise above the price you would otherwise receive from the FiT scheme (£55.70/MWh, indexed to RPI) then you should switch to a PPA and secure higher, longer term prices for your electricity generation.

  • What are ROC cashflow benefits?

    The price you receive for your ROCs will vary dependent upon when you deliver them to the offtaker (typically an energy supplier in this instance). ROCs are required by energy suppliers in August of each calendar year for them to be redeemed against their Renewable Obligation commitments.


    From a supplier's perspective, ROCs only have a tangible value in the August of each year. Delivering ROCs to your supplier each month, to gain valuable cashflow payments for your generation business, therefore reduces the suppliers working capital. This cost of cash is consequently priced into the ROC value you receive, which reduces the price you obtain for your ROCs.


    If possible, delivery of ROCs to your supplier on an annual basis will ensure you achieve a higher price as the cost of cash is not priced into your ROC price. Obviously, this approach may not be possible if you are reliant on monthly ROC payments from your own working capital perspective.

  • What is the current price for electricity?

    The price of electricity is very volatile and is sensitive to supply/demand, macro-economic events, weather, global events and the cost of other fuels (largely oil and gas).


    Whilst it isn't possible to predict the long-term trajectory of electricity prices, there are many energy price reports available to assist with budgeting and hedging strategies.

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