European IPP Encavis digitizes business processes with Pexapark

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European Independent Power Producer (IPP) and renewables operator Encavis has completed a 2-year upgrade to its business process in partnership with digital technology company Pexapark.

The organizational transformation project included upgrading Encavis’ operating system, building new capabilities for power purchase agreement creation and energy portfolio risk management.

The project is part of Encavis’ efforts to prepare for expected growth in the renewable energy market and to enable efficient and secure energy sales and trading, market risk management and business reporting.

Encavis plans to double its renewable energy capacity in service to 3.4 GW by 2025 and digital tools will enable the company to meet the associated challenges, according to the statement.

The project was implemented in four stages, including the modernization of the energy company’s front, middle and back office systems. The upgrades should help Encavis improve the profitability of its business.

The project has led to the formation of new teams within the Encavis business and they include a PPA Origination team, – a dedicated energy sales department responsible for sourcing and structuring PPAs – and a Energy Portfolio Management team, focused on managing merchant energy generation that is not bound by long-term contracts.

These teams are supported by an energy risk management function, built from the ground up, which uses expertise in quantitative analysis to assess the evolution of long-term exposure to market risks and set limits for new agreements. signed.

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Dr. Dierk Paskert, CEO of Encavis, said: “We are witnessing a paradigm shift in the renewable energy market.

“While acquiring and operating unique assets has served us well in subsidized markets, economies of scale are essential to remain competitive in the market environment, where the way energy is traded has completely changed. exchange. In practice, this means that we must actively build and manage large, diversified portfolios to maintain the margins our investors seek.

“To do this effectively, we – along with our industry peers – need to fundamentally rethink our operating system. It’s time to invest in the capabilities that will help us navigate and ultimately take advantage of this transition. “

Pexapark acted as an independent guide throughout the upgrade project, bringing its expertise in energy trading and quantitative analysis to the table. Pexapark will continue to support Encavis with advisory services and access to advanced software tools that directly support the optimal construction and management of growing portfolios and reinforce daily risk management practices.

Michael Waldner, CEO of Pexapark, reiterated, “This new market environment will bring both risks and rewards, but IPPs and investors who soon take steps to adapt their operating system will have the most to gain. As we strive to reach net zero, these leaders are setting the stage for the next phase of renewable energy development and commercial exploitation. »

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