A developer is evaluating a power purchase agreement (PPA) for a 150 MW wind project and needs to understand the basis risk over the long term.
Looking to the Future
The developer uses both historical data and Orennia's hourly power price forecasts for the project location and hub. While there was no significant difference in the past, future projections show some important trends.
Understanding Increasing Market Complexity
The developer sees how other renewable projects under construction nearby will dramatically impact the basis risk for their project. They negotiate protections in the contract to manage this risk.
Protecting Future Revenues
With additional protections in their contract, the developer manages extreme basis events and saves $17 million over the next seven years.