Can you tell us a little about yourself and how you got into the energy sector?
I began my career in the Colombian electrical sector 25 years ago in commercial matters. I have worked in commercial activities, project development and structuring, and corporate affairs, among other areas. I currently develop my activities in the Latin American market.
What led you to specialize in Power Purchase Agreements (PPAs)?
Achieving PPAs requires knowledge of each market, commercial, regulatory and relationship skills I've acquired throughout my career. Each new PPA is a challenge accompanied by constant learning.
What does a PPA Originator Manager do, and what does your typical day look like at MPCES?
Staying constantly updated in each market, evaluating future expansion needs in each country, market prices, expanding commercial, corporate and institutional relationships.
What are the most exciting and challenging aspects of structuring and negotiating PPAs?
These agreements must be highly balanced to maintain long-term sustainability. Maintaining this status requires depth knowledge of the market, and specifically its rules. This is a multidisciplinary effort involving investment, legal, ESG, and other areas. Aligning all expectations is a major challenge.
Can you share an example of a successful PPA deal you’ve worked on and what made it stand out?
The San Patricio PV Project is definitely a success story, achieving a great balance for all parties. In addition to the agreement, we solidified our presence in the region for new developments in markets of our interest.
What factors do you consider when matching energy buyers with renewable energy projects?
This is due to market needs and the unstoppable penetration of renewable energy around the world. Users are increasingly demanding that their suppliers offer sustainable and long-term solutions.
What are the biggest risks in structuring a PPA, and how do you mitigate them?
There are many factors. The financial strength, support, and qualifications of off-takers are essential for a project's bankability. Knowledge of the market and its regulations are essential. You can have the best PPA, but if it's not feasible, you have nothing.
How do regulatory changes impact the way PPAs are negotiated and executed?
In the countries where we work, there is a tradition of legal stability. Their regulations are generally sophisticated and well-structured. Furthermore, PPAs include agreements to manage these events.
What are the biggest trends shaping the renewable energy PPA market today?
The long-term sustainability and resilience of energy transportation systems and the adaptations required to manage energy with variable and disruptive resources. The next challenge is storage.
How do you see corporate PPAs influencing the global transition to net zero?
It's a necessary and unstoppable path. It's a global response to climate change and a key part of the new policies of most governments and the private sector.
One thing on your bucket list?
Camino de Santiago
Nestor, thank you for this interview.
