Episode
215. PPAs, FPAs, IPPs, Flex and Capture rates: new paradigms - Feb26
- Podcast
- Redefining Energy
- Published
- Feb 9, 2026
- Duration seconds
- 1655
- Processing state
not_requested- Canonical source
- http://www.redefining-energy.com
Actions
POST https://stenobird.com/v1/public/podcasts/redefining-energy-947886/episodes/215-ppas-fpas-ipps-flex-and-capture-rates-new-paradigms-feb26/transcription-requests
Idempotently request low-priority transcript generation for this episode.GET https://stenobird.com/podcast/redefining-energy-947886/215-ppas-fpas-ipps-flex-and-capture-rates-new-paradigms-feb26.md
Read the agent-friendly Markdown representation of this episode resource.
Summary
Luca Pedretti, Co-Founder, Pexapark, returns to discuss how volatility, market design, and new contract structures are transforming power markets and renewable economics. What begins with PPA pricing quickly evolves into a broader conversation about where value is now created in the clean energy system. We start with the growing importance of IFRS 13 fair value accounting . In increasingly volatile markets, long-term forecasts are no longer sufficient. Market-implied PPA prices are moving faster than fundamentals and are becoming a key signal for future capture rates and risk, forcing investors to reassess how renewable assets are valued. The discussion then turns to Flexibility Purchase Agreements (FPAs) , including tolls and floors for batteries. FPAs reflect a fundamental shift from generation toward flexibility and optimisation, as renewable-heavy systems face cannibalisation, negative prices, and widening price spreads. With clean sources now accounting for nearly half of EU power generation, these side effects are becoming structural. Solar capture rates have dropped sharply in markets such as Germany, negative prices now occur in thousands of hours across Europe, and curtailment and balancing costs are rising. Batteries have become the system’s primary response. We also explore how the buyer landscape is shifting. Hyperscalers and data centres are increasingly driving private PPAs, utilities are regaining relevance through trading and optimisation, and stand-alone renewable PPAs are showing signs of saturation. Despite this, capital deployment across clean energy continues to grow, signalling a reallocation of value rather than a slowdown. The conversation concludes with a look ahead. Many renewable assets financed under merchant assumptions are now misaligned w…