Over the last years the PPA market in Spain has been growing steadily, as renewables are regaining centre stage in the Iberian electricity market thanks to the significant reduction in the investment costs of grid-connected Solar photovoltaic (“PV”) and Wind projects.

With no government support, PPAs have become a key element for developers to maximize the debt leverage of merchant projects and to mitigate the risk associated with the volatility of electricity spot market prices.

Certain Spanish banks are offering project finance debt to pure merchant projects, but the terms improve in the event of signing a PPA with a credit-worthy counterparty. Thus, projects with PPAs can obtain better financing terms and are therefore able to increase the equity IRR.

The most common types of PPAs in the market are, the physical and the financial (although it has physical delivery)

Our PPA Services include the following four main tasks:

Review and analysis of termsheets


Identification of risks

Structuring advice


Assistance in negotiations

IBERIAN ELECTRICITY MARKET REPORT – SOLAR PV & WIND are now available. Click here to Download Report Brochure