Negative electricity prices are becoming more common in Spain, challenging the traditional risk allocation in PPAs where producers bear most of the risk.
โข Lenders are now pushing for more balanced risk-sharing to protect producers and ensure renewable projects remain viable, with certain unilateral risk allocations no longer accepted.
โข Some lenders now refuse to provide debt financing for projects with PPAs where producers bear all negative price risks, especially if no compensation is provided for both negative and zero-priced hours.
โข Often, debt-to-equity ratios are dropping below 50%, requiring developers to contribute more equity.
