Expert brief
Merchant tail: the uncovered part of a PPA
Updated 2026-06-06•By Antoine Cazals — Voltarione•Read ~3 min
The merchant tail is a renewable park's residual life (typically 25–30 yrs) beyond the PPA (10–15 yrs). The producer then carries spot market risk.
Why it matters
A long merchant tail (15 yrs) depresses LCOE and lowers the initial PPA price. Inverse for an end-of-life park.
Sources & references
Data and methodologies based on:
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