PPA ADVISORY

PPA ADVISORY

Given the constant reduction in solar Photovoltaic (PV) technology costs, many markets have reached grid parity but still, financing entities are reluctant in assuming merchant risk.

The Power Purchase Agreement (PPA) is thereby the key agreement for financing unsubsidized solar PV endeavours. Developing a PV project with a PPA structure is complex and demanding since all of its  main contracts, such as the EPC, O&M and Project Finance, should be aligned with the PPA.

As a result of Hyperion’s strong experience and credibility in the power sector and its significant know-how of the relevant regulatory framework in Iberia, Hyperion was able to close a deal for a solar project backed by a PPA/Project-Finance structure, by far the biggest of its kind and age in Iberia and the first non-state aided project to be built in Portugal with direct participation of a tier-1 bank in its financial arrangements.