Low Carbon scales up to target post-subsidy growth opportunities with Pexapark agreement
Low Carbon partners with renewable software and advisory firm Pexapark to strengthen its portfolio and risk management functions, and ongoing ambitions to scale up its project pipeline
Global renewable energy company Low Carbon has adopted Pexapark’s specialised renewables portfolio and risk management platform, Pexa OS, as part of an agreement that will help position the company to unlock new investment opportunities across the post-subsidy renewable energy market.
The dynamics of today’s renewable energy market are opening up opportunities for agile renewable energy businesses. According to Pexapark’s analysis, these pioneering Independent Power Producers (IPPs) and Funds are transforming themselves into what it terms ‘Next Generation Investors’. This group are defined as players in the market that are equipping themselves with sophisticated data and analytics, investment management systems and a risk management mindset to help accelerate the energy transition.
Low Carbon’s adoption of Pexapark’s full suite of software tools forms part of its ongoing investment in technology to drive its growth. Pexa OS will support Low Carbon’s ambition to generate maximum value from its operational assets and help it navigate volatility in the renewable energy market.
Pexapark’s software will further assist Low Carbon’s asset and investment management teams in Power Purchase Agreement (PPA) origination and structuring, risk monitoring and reporting, and quantifying future risks across an expanding global portfolio. Low Carbon’s new capabilities, bolstered by Pexa OS, will enable the business to bring the active commercial management of its portfolio fully in-house.
Supported by Pexa OS, Low Carbon has ambitious growth plans to create 20GW of new renewable energy capacity by 2030 in the UK, Europe and North America. A significant proportion of those opportunities will be post-subsidy projects with increased exposure to merchant risks and energy market volatility.
Juan Martin Alfonso, COO and CFO, Low Carbon, said: “Today’s announcement demonstrates our proven ability to develop and refine our business model to produce returns for our investors, and support our mission to make a significant contribution to climate change.
We are building the advanced technology and data platforms that will help us open new revenue streams, while continuing to deploy capital at scale into renewables – from concept, through to development, construction, and operation. Our development pipeline now stands at more than 6GW, and Pexa OS ideally positions us to capitalise on investment opportunities and enhance commercial decision-making, as the need for green power and energy security increases.”
Luca Pedretti, COO and Co-Founder, Pexapark, said: “From early discussions right through to the integration of Pexa OS, the Low Carbon team have demonstrated their thorough understanding of the complex risks faced in the new world of renewable energy investments and the sophisticated portfolio management systems needed to remain ahead of the game.”
Pexapark’s recently published Renewables Outlook Survey 2023 found that extreme volatility and regulatory shifts in 2022 caught many renewables players off guard, with 54% of IPPs surveyed stating that enhancing risk management capabilities is a priority. Additionally, 2,084 responses highlighted that quant analysis and an ability to manage short term PPAs are top priorities.
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About Low Carbon:
Low Carbon creates large-scale renewable energy to fight climate change. We’re building a net-zero energy company that will protect the planet for future generations.
This defining purpose drives us to deliver for our communities, investors, and the environment.
We are a long-standing certified B-Corporation and recognised as gold standard for our environmental impact. We’re contributing to the world’s move to 100% renewable energy by creating and operating 20GW of new capacity by 2030.
Low Carbon is on a mission. Together, we will power tomorrow.
About Pexapark:
Pexapark is an award-winning enterprise software and advisory company, specialised in renewable energy. Our renewables portfolio management software suite, the Pexa OS, provides risk and revenue management capabilities to over 9 GW of renewable assets. With more than 170 clients from leading energy companies, we are the trusted provider of both SaaS solutions and consultancy services that support end to end renewable investment and portfolio management processes.
Pexapark’s PPA reference prices increase transparency across 19 markets. Our PPA transaction experts have supported more than 25+ GW of renewable PPA transactions and enable leading companies to manage risk and grow their renewable energy revenues.
Pexapark was founded in 2017 with the purpose of accelerating the energy transition towards net-zero by creating an efficient market for renewable energy
For more information, please visit pexapark.com