Risk Appetite: Content vs. VA Roles
- European energy markets are maturing amid recent crises, with consumers becoming more sophisticated in risk management, according to Domenico Franceschino, head of origination, Western and Eastern Europe, at...
- Axpo's role involves bridging the timing and risk appetite gaps between producers and consumers.
- Franceschino sees axpo's work as helping consumers decarbonize, connecting producers to new markets, and encouraging renewable energy investment.
Axpo is reshaping European energy dynamics by adeptly managing time and risk. The primary_keyword, “risk appetite,” is a key factor, and this article explores the gaps between producers and consumers. Discover how the company’s strategic approach is building new markets across Europe, from spain to Greece, thru cross-border trading. With consumers seeking green energy, learn how Axpo’s deals are accelerating decarbonization, emphasizing flexibility and innovation.Moreover,secondary_keyword impacts are seen through renewable PPAs and strategic market moves. in partnership with News Directory 3, we look at the factors that drive market advancements. Learn about Franceschino’s vision for a diversified portfolio. Discover what’s next in the ever-changing renewable energy landscape.
Axpo Bridges European Energy Markets’ Time and Risk Appetite Gaps
Updated June 03, 2025
European energy markets are maturing amid recent crises, with consumers becoming more sophisticated in risk management, according to Domenico Franceschino, head of origination, Western and Eastern Europe, at Axpo Solutions. He noted that power purchase agreements (PPAs) are evolving beyond simple price negotiations to reflect consumers’ desire for long-term green power at sustainable prices.
Axpo’s role involves bridging the timing and risk appetite gaps between producers and consumers. The company’s performance in the 2025 Energy Risk Commodity Rankings reflects this, with top rankings as a power dealer in Spain and Portugal, and high placement in Central and Southeastern Europe. Axpo also played a key role in building new markets in countries like Slovenia, Croatia, Serbia, and Greece through cross-border trading.
Franceschino sees axpo’s work as helping consumers decarbonize, connecting producers to new markets, and encouraging renewable energy investment. These efforts contribute to the maturation of European power markets.
It’s extremely significant to have a portfolio that’s diversified in terms of technology,countries and tenor. For Axpo,this is because our role is not to find a one-to-one match,it’s to help bridge the risk appetite gap of power producers and consumers.
Domenico Franceschino,Axpo
Consumers are increasingly driven by corporate policies and customer demand for green products,but they seek competitive prices. Axpo closed approximately 11 terawatt hours of renewable PPAs across 13 European countries in 2024, with France, Belgium, and Poland as key markets.The company enables market advancement by managing the time-gap risk between producers and consumers.
Recent market events, including the Russia/Ukraine conflict and the Iberian Peninsula blackout, have pushed consumers to adopt more efficient risk management policies. They now view renewable PPAs as tools for decarbonization and price volatility management. The increased presence of renewable sources has also highlighted the importance of batteries for storage and flexible dispatch.
Flexibility is paramount, with hybrid renewable plants and battery storage becoming more common. Industrials are also realizing they can use their production processes’ flexibility to mitigate price volatility. Axpo’s cross-border capabilities enable consumers to access long-term PPAs in less liquid markets, supported by lenders who are now comfortable financing projects with base load PPAs in other countries.
A recent deal in Greece exemplifies this, where Axpo completed the first public merchant PPA in 2022 and the first corporate PPA two years later. Similarly, in Croatia, Axpo closed a PPA based on Hungarian prices, allowing the asset owner and lenders to sell their power in Hungary. In Slovenia, a corporate PPA was supported by Croatian assets.
What’s next
Looking ahead, Franceschino emphasizes the importance of a diversified portfolio in terms of technology, countries, and tenor.Flexibility tools, especially battery storage assets, are becoming increasingly important for portfolio diversification on both the production and consumption sides of the market. Axpo continues to monitor energy market trends to shape its portfolio.