Our Story

“Challenges” in the FIT Era and the Complexity of PPA Business

From the Buyer's Perspective:
"Another case from before. No progress, just an unnecessary increase in the price."
"With these stringent conditions set by the seller, the cash flow would be in the red from the start."
"Our fund lacks competitiveness if we can't invest unless the project reaches RTB”

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From the Seller's Perspective:
"The valuation by this investment firm is unbelievably low."
"The founder of this investment company may be well-known, but they lack the ability to evaluate projects on their own, and their partner companies' capabilities are also low. It's surprising how low their actual level is. I've wasted my time."
"If there was a more efficient way to narrow down the candidates on the buyer's side..."

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During the FIT era, I myself experienced various doubts and concerns.

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On the other hand, it can be said that the FIT business was straightforward. Compared to the complexity of PPA business development, inefficient negotiations themselves were not so complex. In the FIT business, the negotiations between sellers and buyers were primarily limited to price conditions. This was due to the characteristics of FIT business, such as long-term fixed power purchase prices, no transmission fees, no need for off-takers sourcing or credit risk management, and no imbalance risk burden. FIT was simple. PPA is not. 

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In the PPA business, inefficient matching in the initial stages becomes a hindrance to value-chain development. For a PPA business to succeed, it is crucial for the seller and buyer to establish a cooperative relationship in the early stages. Through my experience in both the buyer's and seller's roles, I have gained insights into the bottlenecks of developing renewable energy projects.

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I increasingly felt the desire to launch a value-adding matching service in the era of PPAs. After receiving positive feedback and advice on the validity of the business model from industry professionals, I launched LADDER RENEWABLES in July 2023.

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LADDER RENEWABLES aims to be your "all-purpose consulting firm" and a gathering place for various information in the industry.