Drax partnership with Pexapark supports price transparency in UK market for PPAs

We’re delighted to announce a new strategic partnership with Pexapark, helping to support price transparency in the UK market for power purchase agreements (PPAs).

As one of the leading suppliers of renewable electricity and energy services to UK businesses, we’re already established in the PPA market. With this partnership, we’ll be distributing quarterly updates on Britain’s PPA market based upon Pexapark’s trusted data and insights.

We’ll send this vital information to a select number of interested customers on our books . These customers come from multiple industries and typically complete deals ranging from 150GWh to 200GWh.

Puzzling PPAs?

At present, the PPA market can be opaque; it’s often characterised by limited data sharing, a lack of consensus between buyers and sellers, and fragmented pricing expectations. This doesn’t suit any of the UK corporates seeking a PPA – including Drax customers. What these potential buyers need is clear and independent market insights that allow them to make better informed procurement decisions.

The lack of transparency is particularly acute in the UK PPA market. There’s a widening gap between developer expectations (shaped by high Contract for Difference clearing prices) and the fair market value of PPAs. At the same time, geo-political uncertainty and ongoing regulatory reforms are creating a volatile energy market, with corporates reacting by recalibrating their procurement strategies and seeking long-term certainty.

Proposing a new PPA solution

Thanks to Pexapark’s insightful input, we’ll be able to share current pricing trends and regulatory changes with our customers. The updates will also unpack the latest market sentiment and track the expectations of buyers and sellers. In addition, the regular reports can spotlight key developments – recent examples being the rise of battery storage and the impact of capture factors on asset value.

To maintain confidentiality and data privacy, we won’t be sharing PPA-specific information with Pexapark. Instead, we’ll only provide insight regarding general market dynamics and trends. Even so, our inputs will strengthen Pexapark’s ability to assess the UK market environment while complementing the 1,000+ data points it collects monthly across Europe’s renewable energy market.

Paul Miller, Customers Sales Director at Drax, said: “Our customers are making long-term commitments to renewables and need more visibility into pricing trends and deal structures. By offering consistent, independent, and insightful market updates, this partnership with Pexapark provides the information and confidence they need, while also – crucially – maintaining their trust.”

Luca Pedretti, COO and Co-Founder at Pexapark added: “This partnership reflects a shared ambition to bring more clarity and trust to the UK PPA landscape. The relationship combines the energy supply and services leadership of Drax with our own price transparency tools to enable renewable energy market participants to make smarter, faster, and fairer decisions.”

To learn more about our partnership with Pexapark, or our PPA offering, get in touch.