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Energy Studies | 7th Mar, 2023

Running an effective PPA tender - 6 Key Points worth noting


Designing a clear and well-organized PPA tendering process will immensely impact the probability of closing the right PPA contract for your organization.

Reading time : 2 min

Written by

Tomás Oliveira

Throughout this post, we will walk you through the 6 most important points that we consider when running a PPA tender.

 

1. Design a clear timeline

That outlines all key stages of the tender process, including:

 

2. Define PPA objectives

Clearly define the objectives of the PPA tender, including:

 

3. Get in touch with potential offtakers

Potential offtaker candidates will need to be selected according to your unique requirements, in regard to:

 

4. Estimate project value through data-driven metrics

Production and electricity market data provide good indications on the risk-return profiles of individual projects. Many of these are covered in the PPA Evaluation Tool, such as:

A correct interpretation of these metrics will ensure you a clear comparision of different PPA offers.

 

5. Establish an evaluation and tracking mechanism

Define traceable and transparent criteria, e.g. quotation dates to evaluate the bids received by the various offtakers.

Synertics PPA Evaluation Tool makes this process easy and accessible by providing data-driven and continuous insights based on current market data and multiple PPA pricing metrics.

 

6. Produce clear tender documentation

Provide detailed instructions to potential offtakers on the tendering process and technical, commercial, legal, and financial requirements of the PPA, such as:

 

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