Research project FinER

FinTech for Renewable Energy Markets (FinER)

A comprehensive analysis of the power purchase agreements market to study the viability of innovative technologies and products, like renewable power futures.

The project at a glance

  • Start date:
    03 Apr 2023
  • Duration in months:
    12
  • Funding:
    FNR – Luxembourg
  • Principal Investigator(s):
    Gilbert FRIDGEN
    Nils Löhndorf (external)

About

The European Green Deal identifies digitalization of energy systems as essential for achieving the EU’s climate goals, emphasizing the importance of renewable power purchase agreements (PPAs) in financing renewable power projects. PPAs, however, present challenges like long-term price risks and high negotiation costs due to their lack of standardization and transparent pricing mechanisms. The proposed solution, renewable power futures, differs from conventional power futures by guaranteeing a share of installed capacity rather than a fixed quantity, accounting for the variability and risks of renewable energy sources. The FinTech for Renewable Energy Markets (FinER) project aims to develop these market mechanisms and technologies, focusing on designing attractive, liquid renewable power futures and the technological requirements for their creation and trade, including the use of distributed ledger technologies and nonfungible tokens for proof of energy production and fraud prevention.

Organisation and Partners

  • Digital Financial Services and Cross-Organisational Digital Transformations Research Group (FINATRAX)
  • Faculty of Law, Economics and Finance (FDEF)
  • Interdisciplinary Centre for Security, Reliability and Trust (SnT)
  • National Centre of Excellence in Research (NCER) in Financial Technologies

Project team

Keywords

  • Renewable power purchase agreements
  • renewable energy
  • renewable power futures
  • distributed ledger technologies

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