FAQ
RenewaFi is the marketplace for wholesale renewable energy in ERCOT. Built for originators by originators, RenewaFi helps sophisticated market participants source and evaluate hedges, so they can focus on closing deals. Originators and traders on RenewaFi browse, post, and counter indicative bids and offers – all anonymously. And when they agree on terms, they can match to reveal their identities. RenewaFi increases speed to market, facilitates price discovery, and expedites counterparty matching. Ultimately, the company’s mission is to help renewable energy professionals decarbonize America’s electric grids.
RenewaFi’s price tracker provides the first, neutral benchmarks of ERCOT PPAs, bringing price transparency to a traditionally opaque marketplace. The tracker includes both high-level benchmarks, called composites, for solar and wind, as well as more detailed benchmarks for specific hubs, technologies, contract durations, and start dates. The price tracker also indicates how actual PPA offers from our marketplace were priced relative to the benchmarks. Based on this comparison, the tracker quantifies the “green premium” implicit in these PPA offers.
All activity in the marketplace is anonymous until two parties agree to match for a given opportunity, at which time those two parties’ identities are revealed only to one another. This ensures users’ identities remain confidential unless they consent to disclosing them. Originators have asked to keep the marketplace anonymous so that they can prospect for offtake agreements without disclosing their identities and signaling their firms' interests.
Each benchmark shows the value over time of a specific combination of technology, start date, term length, and delivery point. We calculate each benchmark by multiplying the expected hourly price of electricity by the expected hourly generation of the relevant technology (solar or wind) over the lifetime of the contract. The result is an objective estimate of the PPA’s value. We then compare that value to the average price of similar offers from our marketplace. The delta between these two figures represents a “green premium” – the extra money a buyer would need to spend above the expected value of the electricity and RECs to enter into the PPA.
RenewaFi is for originators looking to complete physically-settled offtake agreements in ERCOT. If you are an originator representing a developer, wholesaler, independent power producer (IPP), bank, retail electricity provider (REP), or utility, we welcome you to schedule a demo.
The green premium represents the difference between the benchmark price and the average price of similar offers on RenewaFi’s marketplace at any given point. To calculate the average offer price, we filter marketplace data for offers with the same delivery point, COD, technology, and term length. We then calculate a moving average with a 30-day lookback.
Market participants “match” when they indicatively agree to a set of key commercial terms. By “matching,” both parties are revealed to one another so that they can continue negotiations and finalize their offtake agreement offline.
To get the expected hourly price of electricity, we start with forward block prices sourced daily from large brokers. We then use scalars to convert those block prices, which are expressed monthly, into a new price curve with hourly granularity, which is required to analyze renewables shapes. The model then adjusts the hourly price curve based on a range of net load assumptions. By isolating these assumptions, the model aims to be as objective as possible.
RenewaFi currently covers ERCOT only.
Our model uses industry best practices and was developed in consultation with industry experts. The key inputs come from reputable sources like ERCOT and the largest electricity contract brokers in the world. We also make certain of our calculations, like our scalars, available upon request. In addition, the tracker is powered, in part, by actual activity from our marketplace of hundreds of originators. Our marketplace features over 1,000 bids and offers, representing dozens of GW of potential PPAs, and is the only resource that has bid prices from the world’s most reputable offtakers. We ensure the accuracy of our model by testing its outputs against these bids.
RenewaFi market participants can chat directly and anonymously with each other whenever they are within 10% on price or have exchanged a request to match. The chat feature allows market participants to reach consensus on deal terms quickly and conveniently.
To get the expected hourly generation of the relevant facility, we start with the facility’s shape, which describes how much and when it is expected to generate. Because a facility’s actual hourly generation can vary materially from its expected hourly generation, we consider the risk of over or under delivering to expectations. To quantify that risk, we compare actual, historical generation data from ERCOT to the given P50 generation profile in order to understand shape risk and adjust the PPA value accordingly. Finally, if the PPA does not include a $0 price floor, we also adjust the shape for economic curtailment risk at the delivery point.
Originators have asked to keep the marketplace anonymous so that they can prospect for offtake agreements without disclosing their identities and signaling their firms' interests. All activity in the marketplace is anonymous until two parties agree to match for a given opportunity, at which time those two parties’ identities are revealed only to one another. This ensures users’ identities remain confidential unless they consent to disclosing them.
We worked with reputable consultants, including Guidepost Energy, to develop and audit the methodology. We also beta tested it with about a dozen of our market participants.
No. RenewaFi helps originators source and price their offtake agreements. When two parties indicatively agree to a set of key commercial terms, RenewaFi introduces them so that they can continue negotiations offline. RenewaFi does not support contract execution.
Forward block prices represent where traders agreed to transact today for energy that will be delivered at different times in the future. These block contracts typically trade over-the-counter and describe the price and delivery of energy during a pre-specified group of hours for an entire month (e.g., the August 2026, ‘on-peak' block). We calculate the forward block prices by averaging several forward block price curves, which we source daily from large brokers.
Market participants “match” when they indicatively agree to a set of key commercial terms. By “matching,” both parties are revealed to one another so that they can continue negotiations and finalize their offtake agreement offline.
RenewaFi market participants can chat directly and anonymously with each other whenever they are within 10% on price or have exchanged a request to match. The chat feature allows market participants to reach consensus on deal terms quickly and conveniently.
The price tracker updates every day.
No. The marketplace is for prospecting physically-settled offtake agreements only.
Since solar and wind are intermittent resources, their generation fluctuates dramatically, and the value of the generation is highly sensitive to hourly price movements. To analyze these intermittent resources, we therefore need to transform forward price curves into hourly, rather than monthly, granularity. To convert the monthly block prices to hourly prices, we use hourly scalars. We derive the scalars by looking at the variability in hourly prices from the past three years across Houston, North, West, and South hubs. Specifically, we divide each hourly price by its respective monthly block price (7x8, 5x16, or 2x16) to match the format of the forward block prices. We calculate scalars for each hour of each month. For hour 5 (5:00am) in October, for example, we calculate 31 distinct scalars representing each day in October. Since we look at three years of data, our set of scalars for this hour is three times as large: 93 in total. To estimate the future value of hour 5 in October, we start by selecting a scalar from these 93 possibilities. We follow this process for every hour of every day for the next 20 years. Once we multiply the randomly selected scalar by the relevant block price, we get a new price forecast with hourly granularity.
We adjust our scalars to reflect how market conditions are expected to change in the future. We do this by looking at net load. Net load is the amount of electricity demand that cannot be met with renewables. It’s calculated as load minus supply from wind and solar. As net load increases, more supply comes from fossil fuels, which are more expensive than renewables. So when net load is high, we expect price to be high as well. The Price Tracker currently uses a base-case scenario for net load based on ERCOT and EIA forecasts. In the future, users will be able to choose from additional net-load scenarios or customize their own.
Noam Yaffe founded RenewaFi after working for a leading clean power plant developer, where he contracted nearly 800 MW of offtake agreements in ERCOT. Earlier in his career, he was an investment banker focused on tech M&A.
PPAs can be offered in one of two main structures: “unit contingent” or “fixed shape.” Sometimes unit contingent is referred to as “as generated” or “as produced.” In a unit contingent PPA, the buyer agrees to purchase the seller’s energy whenever it is produced. In a fixed shape PPA, the seller promises to deliver a specific, pre-agreed shape regardless of whether or how much the underlying facility actually generates. Valuing unit contingent PPAs presents a challenge because actual generation may differ substantially from the expected generation profile. This is known as shape risk. To calculate shape risk, we compare how much the given solar or wind shape would have earned over the past three years against what solar and wind facilities actually earned over the same time period. This gives us a series of covariance factors for wind and solar. When we multiply these covariance factors by every hour in the 12x24, we convert what is essentially a fixed shape generation profile into a new generation profile with unit contingent granularity.
Our investors include founders and early supporters of leading growth companies like Uber, Square, and Oscar Health. They include First Round Capital, Floating Point, Box Group, Powerhouse Ventures, Mantis, Alumni Ventures, and Day One Ventures.
When electricity supply outstrips demand, the grid sends negative price signals to discourage further generation. This is called economic curtailment risk. A $0 price floor is a PPA term designed to help protect offtakers from paying for renewable energy when power prices are negative. A PPA can be offered with or without a $0 price floor. To quantify curtailment risk for PPAs without a $0 price floor, we compare the value of the given PPA if it were to settle during all hours against the value of the same PPA if it were to settle only during hours when prices are positive.
No. RenewaFi helps originators source and price their offtake agreements. When two parties indicatively agree to a set of key commercial terms, RenewaFi introduces them so that they can continue negotiations offline. RenewaFi does not support contract execution.
Yes. By going through RenewaFi, you would have been able to test the market for alternatives and better pricing, access comparable deals that influence your pricing strategy, and confirm that the counterparty is genuinely interested in your deal. This represents significant value. Unlike a broker, RenewaFi is a neutral platform where you can engage anonymously with both existing and new counterparties in an innovative and efficient way. In fact, RenewaFi works best when everyone you know is using it. That's how it facilitates increased liquidity and transparency.
No. RenewaFi is for prospecting physically-settled offtake agreements only.
All RenewaFi market participants must be able to take physical title to energy. We are happy to make referrals for C&I clients looking to complete financially-settled offtake agreements.
No. RenewaFi is a software company that operates a marketplace for wholesale renewable energy. RenewaFi does not provide advisory, brokerage, or consulting services.
RenewaFi takes compliance very seriously. Our marketplace is exclusively for sophisticated market participants looking to complete physically-settled offtake agreements. As a result, RenewaFi is not registered with the CFTC in any capacity.
RenewaFi implements administrative, technical, and physical security measures to protect the information on its marketplace. These measures include, among other things, multi-factor user authentication, hosting and encrypting data using Amazon Web Services, reviewing production code for cyber vulnerabilities, continuously monitoring network activity, encrypting all stored data, and maintaining a company culture of cyber vigilance. RenewaFi is SOC2 accredited, demonstrating our compliance with globally recognized cybersecurity best practices. While no organization can guarantee complete security, RenewaFi is committed to adhering to cyber security best practices.
Yes. All market participants always have access to their historical data.
RenewaFi is the marketplace for wholesale renewable energy in ERCOT. Built for originators by originators, RenewaFi helps sophisticated market participants source and evaluate hedges, so they can focus on closing deals. Originators and traders on RenewaFi browse, post, and counter indicative bids and offers – all anonymously. And when they agree on terms, they can match to reveal their identities. RenewaFi increases speed to market, facilitates price discovery, and expedites counterparty matching. Ultimately, the company’s mission is to help renewable energy professionals decarbonize America’s electric grids.
RenewaFi is for originators looking to complete physically-settled offtake agreements in ERCOT. If you are an originator representing a developer, wholesaler, independent power producer (IPP), bank, retail electricity provider (REP), or utility, we welcome you to schedule a demo.
RenewaFi currently covers ERCOT only.
Originators have asked to keep the marketplace anonymous so that they can prospect for offtake agreements without disclosing their identities and signaling their firms' interests. All activity in the marketplace is anonymous until two parties agree to match for a given opportunity, at which time those two parties’ identities are revealed only to one another. This ensures users’ identities remain confidential unless they consent to disclosing them.
Market participants “match” when they indicatively agree to a set of key commercial terms. By “matching,” both parties are revealed to one another so that they can continue negotiations and finalize their offtake agreement offline.
RenewaFi market participants can chat directly and anonymously with each other whenever they are within 10% on price or have exchanged a request to match. The chat feature allows market participants to reach consensus on deal terms quickly and conveniently.
Noam Yaffe founded RenewaFi after working for a leading clean power plant developer, where he contracted nearly 800 MW of offtake agreements in ERCOT. Earlier in his career, he was an investment banker focused on tech M&A.
Our investors include founders and early supporters of leading growth companies like Uber, Square, and Oscar Health. They include First Round Capital, Floating Point, Box Group, Powerhouse Ventures, Mantis, Alumni Ventures, and Day One Ventures.
Yes. By going through RenewaFi, you would have been able to test the market for alternatives and better pricing, access comparable deals that influence your pricing strategy, and confirm that the counterparty is genuinely interested in your deal. This represents significant value. Unlike a broker, RenewaFi is a neutral platform where you can engage anonymously with both existing and new counterparties in an innovative and efficient way. In fact, RenewaFi works best when everyone you know is using it. That's how it facilitates increased liquidity and transparency.
No. RenewaFi helps originators source and price their offtake agreements. When two parties indicatively agree to a set of key commercial terms, RenewaFi introduces them so that they can continue negotiations offline. RenewaFi does not support contract execution.
No. RenewaFi is for prospecting physically-settled offtake agreements only.
All RenewaFi market participants must be able to take physical title to energy. We are happy to make referrals for C&I clients looking to complete financially-settled offtake agreements.
No. RenewaFi is a software company that operates a marketplace for wholesale renewable energy. RenewaFi does not provide advisory, brokerage, or consulting services.
RenewaFi takes compliance very seriously. Our marketplace is exclusively for sophisticated market participants looking to complete physically-settled offtake agreements. As a result, RenewaFi is not registered with the CFTC in any capacity.
RenewaFi implements administrative, technical, and physical security measures to protect the information on its marketplace. These measures include, among other things, multi-factor user authentication, hosting and encrypting data using Amazon Web Services, reviewing production code for cyber vulnerabilities, continuously monitoring network activity, encrypting all stored data, and maintaining a company culture of cyber vigilance. RenewaFi is SOC2 accredited, demonstrating our compliance with globally recognized cybersecurity best practices. While no organization can guarantee complete security, RenewaFi is committed to adhering to cyber security best practices.
Yes. All market participants always have access to their historical data.
