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PPA valuation on power forward curves
Value solar, wind and baseload power purchase agreements on EOX power forward curves. Generation is priced hour by hour, so the result shows what the project captures, not just the around-the-clock price.
What goes in, what comes out
The deal
- The hub, the term, the capacity in MW and the PPA price
- Buyer (offtaker) or seller (generator)
- As-generated volume, from a typical solar or wind shape for the region scaled to your capacity factor, or your own 8760 hours or 12 × 24 profile; or baseload
- Price escalator, output degradation and a discount rate
The results, month by month
- Generation and capacity factor
- On-peak, off-peak and around-the-clock forward prices
- Capture price and shape factor (capture against around-the-clock)
- Value against the PPA price, and the first-year breakeven PPA price
Forward prices come from EOX on- and off-peak curves under the market's own on-peak hours and holidays. Where EOX loads the hub's day-ahead history, each block is shaped hour by hour from it, so a solar profile that generates at midday is priced at midday prices, not at the block average.
Example
A 100 MW solar project at HUB1, 25% capacity factor, a 12-month term, valued for the offtaker:
HUB1 is a placeholder and values are illustrative.
Use it from
Python
from eoxlive import EOX
eox = EOX("YOUR_KEY")
res = eox.value_deals([{"type": "ppa", "iso": "ISO1", "market": "HUB1", "quantity": 100, "price": 35,
"side": "buyer", "start": "2027-01", "end": "2027-12",
"profile": {"shape": "solar", "capacity_factor": 0.25}, "hourly_shape": True}])
res["deals"][0]["total"] # value, capture price, shape factor, breakeven PPA price
res["deals"][0]["months"] # month by month, as a DataFrame
Or in the browser, on the Valuation page, signed in with your EOX account, where you can also upload your own generation profile.
Questions
- Where do the solar and wind shapes come from?
- Typical shapes for each region are built from public EIA-930 generation data and scaled to the capacity factor you give. For a real project, upload your own profile.
- Which hubs are shaped hour by hour?
- Hubs in the US ISOs whose day-ahead prices EOX loads. Elsewhere the deal is valued on the on- and off-peak blocks, and the result says so.
- How far out can a PPA run?
- As far as EOX publishes the curve, including the 20-year power curves. Months past the end of the curves are left out, and the result says which.
- Is this a valuation opinion?
- No. It is the deal's value on EOX forward curves for your own analysis.
Included with your subscription. The tools use the curves, vols and correlations your subscription already covers, under the same entitlements, and are never charged for separately. Results are for information only; values shown on this page are illustrative.