PAM is a market-first and has been launched as demand for stress-testing renewables portfolios is at an all-time high. By providing portfolio modelling in minutes, PAM can significantly enhance investor confidence in clean energy portfolios by quickly identifying the best performing project under different market scenarios.Portfolio and investment analyses are crucial for IPPs and Funds looking to navigate today’s volatile, post-subsidy power markets. Without these capabilities, independent power producers and funds risk not staying ahead of a challenging investment environment that requires continually optimising and analysing the impact of potential hedging and investment decisions. One company that has discovered PAM’s benefits is Finnish energy company Ilmatar, which manages fully unsubsidised wind farms in the Nordics – a region that has recently witnessed market shocks. The Module’s stress-testing and simulation features help Ilmatar prepare for market prices plummeting by quickly analysing how its portfolio or individual assets would be affected under market-stressed conditions, like what was seen during the pandemic. IPP Low Carbon and Developer Galileo have also understood the importance of having a solid risk and revenue management system when seeking to build a new pipeline of assets. At this stage of their growth, both companies must decide which developments to retain, add, and sell – as well as how to optimally hedge these assets. PAM supports these two companies to make effective investment decisions through its stress-testing features, quickly running simulations on what the risk-adjusted returns would be for different combinations of assets. With the use of industry-trusted risk/revenue models, Low Carbon and Galileo do not have to design these models themselves, freeing up valuable internal resources. Kai Pohl, Head of Risk at Low Carbon said: “PAM is helping us manage our portfolio of more than 1GW of renewable energy. We’ve adopted the tool to demonstrate our focus on optimising project risk-adjusted returns and thus increase valuations and investor confidence. Gaining the ability to test hedging decisions and asset performance under various conditions gives us a significant advantage in this volatile market – including capitalising on investment opportunities and optimising the risk-adjusted returns.” Rami Rajala, Director, Generation and Assets at Ilmatar said: “PAM helps us stress-test the revenues of our existing wind assets in Finland as well as potential new investments. We understand that building sophisticated data infrastructure has become more important than ever, as simpler tools such as Excel spreadsheets are simply at their limit and time intensive. Our use of this module represents the need to be ahead of the curve to minimise risks and optimise revenues.” Roberto Pizzini, Head of PPA Origination at Galileo, said: “To build up a pipeline of new assets and satisfy lenders, we wanted to take the best practices and tools from the market for modelling project revenues. We have recognised that Pexapark are experts for both. As such, we have adopted their new Portfolio Analysis Module to help us quantify value for investors in our new projects and assess how this can be optimised in the markets we operate in.”
This press release was amended on 27/11/2023 to remove a reference to Low Carbon operating as Fund Manager.