2023 - A Fantastic Year for PPAYA

As we approach the end of 2023, here at PPAYA we would like to reflect on our successes from this year, and the renewable energy market updates from the past 12 months.

This year we are proud to have signed over 120MW of renewable energy, bringing our total to over 650MW, ranging across wind, solar, hydro, anaerobic digestion (AD) technologies.

• Industry News

Although some of the pressures from the global energy crisis have eased, energy markets remain fragile. Ongoing geopolitical events, including conflicts in Ukraine and the Middle East, continue to pose significant risks of further disruption and erratic fluctuations in gas and power prices.

Over the course of the year, prices have fallen back significantly from the height of the energy crisis in 2022. Key products such as Summer24 and Winter24 have retreated more than 50%, from £175/MWh to around £75/MWh and £210/MWh to around £98/MWh, respectively. These falls are mainly attributed to the dramatic reduction in gas prices over this period, with Summer24 falling from 180p/th to 90p/th, and Winter24 from 195p/th to 105p/th.

The main drivers of this dramatic collapse in price have been a significant fall in European gas and power demand, combined with mild weather and excellent LNG flows. Carbon prices over the past 12 months have also fallen from around £70/Tonne to around £35/Tonne at the end of the year, contributing to the significant decline in power prices, especially on the curve.

Wind output over the past year has been marginally higher than last year, but gas electricity generation has fallen below 2020 levels, mainly due to the return to service and excellent flows from all interconnectors. Major new generation commissions this year have been Hornsea 2, which finished commissioning at the end of Q4 2022, and Seagreen offshore wind in Q3 2023.

CP22 REGOs experienced an upward trajectory this year, reaching record highs of £24.80 per certificate in October. Despite a significant pullback of around 50% in November, the overall upward trend persisted. The final E-REGO auction of the year valued intermittent REGOs at over £13, with all others falling in the £11-12 range.

• PPAYA’s Growth

We are excited to announce our successful entry into the Integrated Single Energy Market (I-SEM) by incorporating our first Northern Irish Anaerobic Digestion sites. This accomplishment is the result of our partnership with Gravis Capital Management Ltd, a forward-thinking fund management company specialising in long-term investments in essential infrastructure projects.

We have also entered the Corporate Power Purchase Agreements (CPPAs) market, where we’ll be aligning renewable power with the consumption needs of our corporate clients.

• Awards

We are honoured to have received recognition from many renowned industry organisations. Over the course of the year, we were delighted to win REA's "Financial Leadership" and Solar and Storage "Start-Up of the Year." Additionally, our CEO, Kristina Rabecaite, was selected as a winner in Management Today's "35 Under 35 - Most Inspirational Business Women."