Navigating the New IFRS Reality for PPA with Francisco Jimenez of EY

Welcome back to The Pexapark Podcast!In the first part of the episode, Luca Pedretti sits down with Francesco Jimenez, Partner at EY, to break down a topic that has quickly become front-of-mind for many offtakers and developers: IFRS and PPA accounting. With new rules applying from January 1, 2026, the conversation looks at what has actually changed, why it matters, and how companies can prepare – especially when PPAs may trigger derivative accounting, fair value movements, and earnings volatility.Enjoy their conversation on topics including:What IFRS is – and why the January 1, 2026 amendments matter for PPAsWhich PPAs are more likely to be treated as derivatives (and why)How the changes affect the “own-use” exemption for certain physical, pay-as-produced PPAsWhat hedge accounting can (and can’t) solve when fair value moves hit reportingHow fair value is determined in practice (Level 1 / 2 / 3 inputs) when PPA markets aren’t fully liquidPractical steps companies can take now: contract assessment, valuation inputs, and process readinessIn the second part of the episode, Luca turns to recent Pexapark market intelligence – starting with the first-ever Pexapark leaderboard for the European BESS offtake market, focused on Flexibility Purchase Agreements (FPAs) such as floors, tolls, and swaps (and excluding optimization agreements). The episode then shifts to Italy, where leaked details of a proposed New Energy decree reportedly triggered sharp moves in forward power prices and spillover into PPA pricing – highlighting how policy risk can quickly translate into market risk for offtake and investment decisions.Unlock More PPA Market InsightsRegister for your free Pexapark account to stay updated on the latest energy transition trends. Learn more >