RenewaFi Introduces Marketplace for ERCOT Renewables
122 originators and traders from 44 companies have joined the marketplace.
171 bids and offers, representing over 7.8 GW of renewable energy, have been posted since April 4th.
RenewaFi today announced initial activity levels on its new marketplace for ERCOT renewables. Since the start of RenewaFi's limited release on April 4th, 122 originators from 44 companies have joined the marketplace. These market participants have posted 171 bids and offers, representing over 7.8 gigawatts of ERCOT renewables. Market participants have matched on the platform and are currently negotiating a transaction.
Noam Yaffe, Founder of RenewaFi, said: "We are laser-focused on helping our market participants rapidly source and evaluate bespoke PPAs. We do that by providing access to never-before-seen price transparency – including the bid-offer spread for various PPA structures – so that originators and traders can focus on finding the best counterparties, terms, and prices."
Originators and traders who post an anonymous bid or offer on RenewaFi gain access to other anonymized prices on the site. They can browse, filter, and download this data. If they find something potentially transactable, they can send a counter to – or request to match with – the relevant counterparty. When two market participants agree to match, RenewaFi introduces them so that they can enter bilateral negotiations directly, offline.
All market participants are pre-vetted, and access to RenewaFi is by invitation. Of the 44 companies on the site, 21 are investment grade. Participating organizations include 21 developers looking to sell and 23 companies that can both buy and sell, including wholesale firms, utilities, investment banks, REPs and industrials.
On average, 24 bids and offers are posted to the marketplace each week. The average size of these posts is 155 MW. Approximately 15% of the posts are fixed shape, while 85% are unit contingent. Terms range from two to 15 years, with an average of ten.
Based on this growing data set, RenewaFi market participants can obtain the bid-offer spread for an increasing number of products. For example:
- For a 10–12-year, unit contingent solar PPA at North Hub: $42-$45/MWh
- For a 10-year, unit contingent solar PPA at Houston Hub: $43-$55/MWh
- For a 7-year, unit contingent wind PPA at West Hub: $28-$30/MWh
In addition, several market participants have matched on RenewaFi in connection with a long-term solar PPA at West Hub. Originators are currently negotiating this potential transaction bilaterally.
In light of the early activity on the marketplace, users have said the following about RenewaFi:
- “This is a phenomenal tool for creating liquidity.”
- “We’ve been talking about how fun it is to checkout and play with. Great interface.”
- “We use your data alongside a couple other resources to present internally on where the market is now.”
RenewaFi is now expanding the marketplace to new participants with strong reputations in renewable energy contracting. If interested, please schedule a demo here or contact John Choi (john@renewafi.com).
About RenewaFi
RenewaFi is the marketplace for ERCOT renewables. RenewaFi helps sophisticated market participants price and source their offtake agreements. Originators and traders on RenewaFi can browse, post, and counter indicative bids and offers – all anonymously. And when market participants agree on terms, they can match to reveal their identities. RenewaFi increases speed to market, facilitates price discovery, and expedites counterparty matching. Ultimately, the company’s mission is to help energy professionals decarbonize America’s electric grid.
