The HC Commodities Podcast Repricing Power: How Clean Energy is Reshaping Global Power Markets, with Luca Pedretti
Mar 4, 2026
Luca Pedretti, CEO and founder of Pexapark, a pricing intelligence firm for clean energy. He discusses how PPAs evolved into complex contracts, why battery storage is shifting value to hourly spreads, and how renewables are causing market repricing, negative prices and curtailment. He also contrasts US and European market designs and forecasts consolidation and storage momentum ahead.
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Episode notes
Renewable Dominance Reprices Power Markets
- Renewable dominance causes negative prices, higher balancing costs, cannibalization of capture prices, and curtailment in saturated zones.
- These effects shift revenues and require market and contract innovation to allocate risk and value firm delivery.
Weather Now Dominates Short Term Volatility
- Higher renewable penetration increases short-term volatility because weather drives output, widening low/high daily price spreads.
- Balancing costs spike when forecasts deviate and systems lack nodal granularity, turning price risk into real volume risk and curtailment.
Buy Flexibility Not Just Energy
- Capture the value of flexibility by investing in batteries, peakers, or interruptible demand as spreads widen between low and high price hours.
- Corporates should seek firmer profiles if they want real hedge value rather than simple as-generated solar PPAs.