Algorithm optimizes renewable power procurement in Germany

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From pv magazine Germany

Electricity trader Flexpower has expanded its “Powermatch” platform with an optimization tool designed to help companies find the most cost-effective combination of renewable power purchase agreements (PPAs) and electricity market procurement.

Procuring electricity for industrial users is complex and typically requires sector expertise and legal support. Flexpower aims to streamline this process through its platform, where commercial customers can sign PPAs – for instance, for solar power in the next quarter or for delivery in 2027 – with Flexpower acting as the electricity supplier.

Unlike traditional pay-as-produced PPAs, the company’s contracts are not tied to a specific generation facility. Flexpower aggregates electricity from hundreds of solar and wind farms and supplies it at a pay-as-forecasted price. Diversification across its portfolio enables accurate forecasting of generation profiles in Germany. Flexpower bears the residual market risk, eliminating the need for direct negotiation between producers and buyers. The approach is intended to lower barriers to entry for smaller consumers and generators.

While the “Powermatch” platform simplified PPA access, customers still faced uncertainty over how to combine photovoltaic and wind PPAs with spot market purchases for optimal costs. The new algorithm-based tool addresses that gap by calculating a cost-optimized procurement mix based on each company’s annual consumption, load profile, risk tolerance, and industry sector. It also visualizes how consumption, generation, and market prices align throughout a typical day.

“With our PPA configurator, we make the combination of spot market procurement and PPA structures intuitively understandable,” said Max Amir Dieringer, CEO of Flexpower. “The transparent on-screen pricing enables even companies without their own energy procurement department to make informed decisions about their electricity supply and potential flexibility savings.”

The calculations draw on market data from Flexpower’s “Powermatch” platform for the 2026 delivery year, standardized load profiles from the German Association of Energy and Water Industries (BDEW), and historical generation data from German wind and solar facilities. Flexpower said the tool reflects real market conditions and should provide a reliable decision-making basis for industrial electricity customers.

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