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Pexapark has collaborated with green independent power producer (IPP) NextWind to develop an energy trading strategy for its wind farm portfolio in Germany, ahead of planned repowering.
With assistance from Pexapark’s portfolio trading services team, NextWind has successfully arranged separate route-to-market and hedge contracts for a 200MW portfolio of wind farms spread across Germany.
These agreements will allow NextWind to maintain stable revenue generation from the 20-year-old projects, which have now reached the end of their “regulatory life” under the Erneuerbare Energien Gesetz (EEG) subsidy scheme.
By securing these contracts, NextWind is mitigating merchant risk for the period between the expiry of the EEG subsidy and the full repowering of the sites, anticipated between 2026 and 2027.
As part of its mission to modernise Germany’s ageing wind infrastructure, NextWind’s repowering initiative could potentially triple the total capacity of a wind farm, while capitalising on strong local wind resources and existing grid connections.
With repowering and lifetime extension projects gaining traction across Europe—but with limited precedent for completed projects—new and innovative strategies are becoming essential to transition older, post-subsidy assets into the next stage of commercial operation.
Pexapark played a crucial role in supporting NextWind, not only by identifying an innovative approach to optimising project revenues but also by leveraging advanced software tools to significantly expedite the tendering process.
“In the German market, both RTM and hedging needs are usually fulfilled through a single contract with the offtaker who offers the most attractive balancing agreement – but this is a compromise that can often result in an unfavourable hedging price,” said Jens Hollstein, EVP Advisory, Pexapark.
“By separating these contracts, we were able to secure the most attractive balancing contract with one offtaker and the most attractive hedging contract with a second.
“That ultimately resulted in an uplift of between €10 and €15/MWh, as compared to a single agreement – significantly enhancing the value NextWind can deliver from the wind farms.”
Werner Suss, Co-CEO and Co-Founder of NextWind, added: “Innovative, data-driven trading strategies are integral to NextWind’s mission to give Germany’s wind infrastructure a new lease of life.
“We were delighted to work with Pexapark to secure ongoing revenues for this project, laying the groundwork for our upcoming repowering plans and helping to create as much value as possible for our investors and local communities.”
