Skip to main content
Free trial
Whitepapers Power purchase agreements: financial model for renewable energies

Power purchase agreements: financial model for renewable energies

What’s the fair value of a PPA in today’s market?
This in-depth guide helps you understand how to structure, price, and evaluate PPAs-based on real data and European market conditions.

Download the whitepaper to explore long-term risk hedging, pricing models, and evolving contract formats.

What’s inside?

Originally published by Energy Brainpool and updated by Montel in August 2025, this whitepaper offers a clear explanation of PPA structures and valuation methods.

You’ll learn:

  • How PPAs reduce risk for both buyers and sellers

  • What makes a fair-value PPA price in today’s market

  • How onshore and offshore wind assets are financed using PPAs

  • Why hybrid and hydrogen-linked PPAs are gaining traction

  • How to calculate a value-neutral hedge for renewable assets

Who should read this?

This guide is built for:

  • Corporate energy buyers securing long-term green electricity

  • Renewable developers and asset owners seeking price certainty

  • Traders and analysts evaluating risk and revenue over time

  • Advisors and financiers modelling the value of new projects

Key takeaways

  1. PPAs offer long-term stability for both sides Consumers lock in prices; generators secure financing. The risk of price volatility is shared and reduced.
  2. Hybrid PPAs improve value for renewables By pairing solar or wind with storage, hybrid PPAs help avoid negative prices and optimise delivery.
  3. Hydrogen PPAs are emerging fast As green hydrogen ramps up, early PPA deals (like Hy2gen in Germany) show how compliance and financing will work.
  4. Value-neutral hedging helps model risk Hedging part of your output (not all) can balance long-term market exposure with predictable returns.
  5. Fair value for German wind PPAs in 2026–2030 is estimated at EUR 58.54/MWh Based on real-world market data and price scenarios as of July 2025.