The agreements incorporate real-time market optimisation technology aimed at mitigating exposure to negative electricity prices through intra-day trading. Covering the Long Pasture, Steeraway and Rock Farm solar farms, the deals appoint EDF as the route-to-market (RTM) offtaker for more than 150MW of solar capacity currently under construction in the UK.
Each PPA has been structured to reflect the CfD revenue framework, with commercial terms designed to complement the index-linked government contracts underpinning each site.
Alongside the core supply arrangements, the agreements include optimisation provisions utilising AI, market leading software, and EDF’s vast trading capabilities to manage intra-day trading and limit the financial exposure associated with negative power pricing events, which have become an increasing consideration for solar generators operating within competitive electricity markets.
The agreements represent some of the first renewable energy projects in the UK to incorporate this form of real-time optimisation within a CfD PPA structure, demonstrating once again Enviromena’s first to market approach in addition to EDF’s market leading expertise.
Lee Adams, Chief Commercial Officer at Enviromena, said: “These agreements reflect the commercial sophistication we are applying across our operational portfolio.
Securing long-term PPA arrangements with a counterparty of EDF’s scale provides revenue certainty that complements our CfD contracts, while the optimisation technology built into these agreements is a meaningful step forward in how solar generators can manage their exposure to market volatility.
Intra-day trading conditions have become a real operational consideration for projects of this scale. Having the tools to respond to those conditions in real time, not just in principle but embedded within the PPA structure, is something we believe will set a new standard for how CfD-backed solar projects are commercialised.”
Ross Irvine, Senior Manager of PPA Origination & Structuring at EDF, said: “Supporting the development of new renewable generation in the UK is a key priority for EDF, and we are pleased to be partnering with Enviromena on these PPAs.
By combining our market leading route-to-market services with advanced optimisation and trading capabilities, these PPAs are designed to help maximise the value of CfD-backed assets while managing increasing market volatility, including the growing impact of negative pricing.
This collaboration reflects our continued focus on delivering innovative, flexible solutions that support generators and contribute to the UK’s transition to a more resilient, low-carbon power system.”
