Working directly with the teams at Greenbyte - a software platform designed to optimise renewable energy production across global portfolios - and Pexapark - a business that sets out to evolve the ‘operating system’ for post-subsidy renewable energy management - Ardian Infrastructure has set out to implement a future-proof end-to-end renewable energy monitoring online platform that will help it, and the management teams of its renewable platforms, to create additional value and monitor technical and market risks in tandem.
These risk management goals are growing in significance and urgency for investors and operators as the renewables sector worldwide transitions into a new phase of operation. Ten years ago, most projects benefitted from long-term subsidies. Today, the removal of subsidies across many markets means that asset revenues and price risk must be actively managed through Power Purchase Agreements (PPAs) and other revenue hedging mechanisms.
As Ardian continues to expand its renewables portfolio across Europe, the US and Latam, seeking further investment opportunities in its core markets while taking into account their transition out of subsidies, Ardian Infrastructure with its Digital and Data Science Team has taken a pioneering approach to digitising its operating models.
By integrating Greenbyte’s asset monitoring and management platform, the Ardian Infrastructure team aims at being able to oversee and benchmark technical performance across its portfolio, covering three markets in Europe, five markets in the US and two in Latam.
“Increasing exposure to the volatility of the ‘merchant’ power market is driving a fundamental shift in the way we look at and manage our portfolio for our investors” said Mathias Burghardt, Head of Ardian Infrastructure. “On the one hand, we need to place greater emphasis on optimising production to extract as many megawatt hours of clean power as possible from our assets. On the other, we must build our energy sales and risk management best-in-class expertise to control and hedge our financial exposure and stay on top of market dynamics to capture the best windows of opportunity.”
Jonas Corné, CEO, Greenbyte, added that full transparency on asset performance is a hugely powerful tool and that Greenbyte gives Ardian and its management teams a means of creating accountability, not only with its own investors, but also with regional Operations & Maintenance (O&M) teams and Original Equipment Manufacturers (OEMs). This data will help Ardian incentivise performance and value creation activities across the portfolio, as well as hold other parties to account during contractual negotiations.
For the European portfolio, production data from Greenbyte feeds directly into Pexapark’s ‘operating system’ of energy revenue and risk management tools, which provide a comprehensive and transparent view on the realised market value of Ardian’s renewables assets in Europe, while constantly assessing the long-term value, risk and performance of the entire portfolio, and energy contracts.
This powerful combination of technical, revenue and energy risk data is already enabling Ardian Infrastructure to undertake important portfolio-wide analysis, including a target of ‘revenue-based availability’ calculations that can be used to optimise and schedule maintenance programmes for periods of low production and low prices. In the longer-term, it will help the team to build a renewables portfolio that is optimised to manage the full range of market risks in the ‘new world’ of renewable energy operation.
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