Managing PPAs
Molecule supports a variety of Power Purchase Agreement (PPA) types. All are typically booked using the same core structure:
- Create an Asset that will hold the shape (and/or forecast)
- Create a Trade using a special product that links to that Asset
- Upload the Asset shape, as-of the trade date
Once this is done, PPA position (and P&L) will be calculated each time market data is uploaded. Further, PPA position will update whenever the related Asset data is updated.
Features Supported
Molecule's PPA functionality supports many different situations related to PPAs, including:
- As-Generated PPAs, where only a percentage of a shape is being bought or sold, and/or where the forecast shape may be updated from time to time (relies on Dynamic Volume Trades)
- Extremely long tenor (i.e., decades), settled hourly (relies on Cascading)
- PPAs with a formula price (uses Pricing Formulas)
- Expected forward revenue and MTM calculations
Known Limitations
- Currently, you manage the trade and the shape on separate screens. We intend to unify these in the UI.
- The order of creation -- first Asset, then Trade, then Asset Valuations (shape) -- currently matters.
- If your volumes do not appear to be updated, make sure that (a) the frequency of the Asset data matches the frequency of the trade, and (b) market data (for the Trade Product) has been uploaded to trigger valuation.
Positions & Valuations
PPA positions & valuations appear on the same outputs as other trades, namely valuations.
