The green energy transition is supported by power purchase agreements (PPAs), which are bilateral contracts used to lock in energy prices for the uncertain future power production of renewable energy plants for up to 15 or 20 years into the feature. The value of a PPA is mainly driven by the joint distribution of future production rates and future spot energy prices. In this talk, we present quantitative approaches to pricing PPAs and to hedging the inherent risks of a PPA.

Christian Kappen is a Senior Manager at d-fine with more than 11 years of experience in quantitative finance. He has a track record in derivatives pricing & hedging, counterparty credit risk modelling, model validation, and banking supervision, with clients both in the banking and in the energy sector. Before joining d-fine, Christian worked as a researcher in pure mathematics (arithmetic algebraic geometry): at the MIT, the University of Münster and the university of Duisburg-Essen. He holds a PhD in mathematics (University of Münster) and an MSc in mathematical finance (Oxford University).