Solved

Will OVO still offer power purchase agreements once the Feed in Tariff is over?

  • 20 August 2018
  • 3 replies
  • 986 views

As a community energy group we are currently wondering what the Green energy purchasing market may look like post Feed In Tariff from April next year?
Will OVO still be interested in buying green energy from producers once the Feed in Tariff is over?
Will OVO still offer power purchase agreements?
What will be the possible value /kWh on the PPA agreements and what would be their likely term?
icon

Best answer by Nancy_OVO 29 August 2018, 17:18

Hey @Community Power Cornwall,

I've had a response from the experts!

OVO is committed to supplying its customers with Green Electricity, whether the Feed in Tariff exists or not. At the moment though, we wouldn't be able to speculate on on whether we plan to offer PPAs or the price we'd be able to offer.

Sorry we can't give a concrete answer right now!
View original

3 replies

Userlevel 6
Badge
I'll have to get back to you on this one, @Community Power Cornwall!

I've messaged some experts and hopefully I'll be able to give you an update soon. In the mean time, I wonder if any other forum users know much about power purchase agreements - @Transparent, @Bumblebee?

Cheers
Userlevel 7
Badge +3
Hmm. Selling electricity back to the Grid is surely on the increase isn't it @Community Power Cornwall?

Under the Demand Side Response strategy, all customers with SMETS2 meters will be able to trade electricity in half-hour bundles. Ofgem's site has DSR at the centre of how it sees the electricity market advancing.

The legislation has been enacted and the regulatory framework is ready to go.

But until the Energy Suppliers have enough SMETS2 meters in the field, I can't see them wanting to offer Tariffs based on Half-hour (HH) variable pricing.

The best prices will presumably be available to those with stored power which can be released once the cost per kWh reaches preset parameters. So those with Storage Batteries or EV's with V2G chargers will be first to embrace whatever new tariffs are on offer. OVO are almost certainly going to be at the forefront of this because of their investment in VCharge Mass-Storage Network software.

Since Cornwall (and West Devon, where I'm based) have a surfeit of renewable generation, I would also expect prices to fall for electricity being offered from solar and wind sites without storage. That's the inevitable consequence of market forces once government subsidies are no longer skewing that market.

I don't see how the market (or OVO) would treat Community Groups any different to ordinary consumers if the energy being offered for sale is connected to the Distribution network (33kV and below). Only suppliers to the HV (Transmission Grid) level can expect more favourable terms because they're not contributing to the imbalances and increased losses which DNO's like Western Power are now financially incentivised to reduce.
Userlevel 6
Badge
Hey @Community Power Cornwall,

I've had a response from the experts!

OVO is committed to supplying its customers with Green Electricity, whether the Feed in Tariff exists or not. At the moment though, we wouldn't be able to speculate on on whether we plan to offer PPAs or the price we'd be able to offer.

Sorry we can't give a concrete answer right now!

Reply