FIS solution for End-to-End Management of PPA Lifecycle
Recent market developments indicate that renewable generation continues to expand despite certain political headwinds. The intermittent nature of wind and solar production, combined with the need to finance large-scale renewable assets, has driven the widespread adoption of Power Purchase Agreements (PPA) – long-term contracts characterized by complex pricing structures, time-series-based forecasting, volume fixing and unfixing, and the calculation of associated certificate volumes.
More recently, the industry’s focus has begun to shift toward energy storage technologies, adding further complexity to contractual arrangements. Flexibility Purchase Agreements (FPAs), designed to provide stable revenue streams for Battery Energy Storage System (BESS) investors, introduce embedded optimization requirements in addition to the structural complexities already present in PPAs.
Traditional ETRM systems undergo certain adaptations to accommodate the physical and financial intricacies of these contracts. In principle, functionalities such as price and volume fixing/unfixing and management of production forecast adjustments can be implemented through ETRM customizations – an approach adopted by several vendors. However, dedicated solutions with native time-series management and visualization capabilities would significantly enhance usability and operational efficiency.
FIS takes a differentiated approach to PPA management compared to many other vendors. The company offers two distinct solutions for transaction management in energy markets. The first is a classical ETRM system – FIS Energy Trading, Risk and Logistics Platform (ETRLP). The second, FIS Energy Portfolio Management (EPM), is tailored to physical asset-based trading and includes robust time-series management capabilities. FIS leverages a combination of these two platforms to support customers managing large PPA portfolios.
As Veronika Sprlakova – Solution Architect at FIS- mentioned in our recent discussion, this integrated approach has proven successful. Together, the two platforms form an integrated ecosystem covering the full value chain – from contract origination and exposure management to hedging and settlement – while ensuring a single source of truth across Front, Middle, and Back Office functions.
EPM delivers detailed physical exposure insights, while ETRLP serves as the global risk backbone. Complex deal capture and lifecycle management for PPAs and FPAs including physical and financial exposure calculations, scenario analysis, optimization, and settlement logic are handled within EPM. Aggregated positions are then automatically transferred to FIS ETRLP for hedging and risk management.
According to Veronika, leading customers in the EU and the UK report tangible benefits from this setup. These include a fully automated PPA lifecycle, real-time trade notifications, integrated scheduling and nominations, and end-to-end straight-through processing from customer request to hedge execution with complete exposure transparency. Comprehensive REST API–based integration supported by FIS is relieving customers of the burden of managing complex system integration, which is usually one of the most challenging aspects of solution ecosystems.
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