Drax and Pexapark Announce Partnership to Improve Price Transparency in the UK PPA Market

Drax and Pexapark, the price intelligence platform for clean energy, have agreed a strategic partnership which will support price transparency in the UK Power Purchase Agreement (PPA) market. 

As one of the leading suppliers of renewable electricity and energy services to UK businesses, Drax is an established player in this market. It has corporate PPA buyers from across a broad spectrum of industries, with deal sizes ranging from 150 GWh to 200 GWh.  

Like all corporates seeking a PPA, these Drax customers need clear, independent market insights to make informed procurement decisions. Yet today’s PPA market is often opaque – characterised by fragmented pricing expectations, limited data sharing, and a lack of consensus between buyers and sellers. 

This lack of transparency is particularly acute in the UK at present. For example, the gap is widening between developer expectations (shaped by high Contract for Difference clearing prices) and the fair market value of PPAs. And at the same time, in a volatile energy market affected by geopolitical uncertainty and ongoing regulatory reforms, corporates are recalibrating their procurement strategies and seeking long-term certainty. 

To address these challenges, Drax selected Pexapark as its trusted data and insights partner. Powered by Pexapark’s market-validated price data and leading insights, Drax will distribute Pexapark’s GB Quarterly Market Reports to a select number of its customers with an appetite for PPAs.  

These updates will provide indicators of current pricing trends and regulatory developments, unpack market sentiment, and track buyer and seller expectations. They’ll also spotlight key developments – recent examples being the rise of battery storage and the impact of capture factors on asset value.  

“This partnership reflects a shared ambition to bring more clarity and trust to the UK PPA landscape,” said Luca Pedretti, COO and Co-Founder at Pexapark. “Combining the energy supply and services leadership of Drax with Pexapark’s price intelligence tools enables smarter, faster, and fairer decision-making for renewable energy market participants.” 

Drax will provide insight regarding UK market dynamics and trends while maintaining its confidentiality and data privacy agreements with customers. These inputs will strengthen Pexapark’s ability to assess the UK market environment, while complementing the 1,000+ data points it collects monthly across the European renewable energy market.  

Paul Miller, Sales Director at Drax, added: “Our customers are making long-term commitments to renewables and, to do so with even more confidence, need visibility into pricing trends and deal structures. By partnering with Pexapark, we’re providing a key PPA audience with consistent, independent, and insightful market updates.” 

Pexapark |  pexapark.com