Engie is attempting to woo developers of low carbon generation projects by touting long-term fixed price power purchase agreements.
The firm claims its ‘bankable PPAs’ will give investors the confidence they need to back developments as plants will earn a guaranteed income for the duration of the loan repayment period. That can be a 100 per cent fixed wholesale price agreement for up to 10 years.
Alternatively, developers can go for index-linked agreements, with prices based on market indices such as N2EX. These can include seasonal hedges, floor prices and they can also support CfD and FiT structures, said Engie.