Are you considering a PPA for your business?
What is a PPA?
A Power Purchase Agreement (often referred to as a Corporate Power Purchase Agreement (CPPA), is typically a contractual agreement between your organisation and an renewable energy generator. It can, on occasion, also involve the energy supplier.
These long-term agreements involve an amount of renewable energy (such as solar or wind) being purchased at a fixed price over a set period of time.
Making sure you get the expert advice and support before entering your agreement
As Power Purchase Agreements (PPAs) are a long-term solution, often spanning between 5-20 years, it’s vital you have confidence in your decision and a full understanding on how the PPA will affect your organisation.
When considering whether a PPA is the right choice for your business, we are here to guide you on the PPA variations and offer solutions that fit your company requirements.
Guiding your organisation through the benefits of a PPA
From both a commercial and an environmental perspective, there are numerous potential benefits to be gained from PPAs – here are some of the leading ones:
- Long-term energy price security – budget with confidence
- Enables both the financing and additionality of new renewable energy projects
- Reduces the risks associated with buying electricity in a volatile market
- Cuts your scope 2 emissions
- Enhances your organisation’s sustainability credentials and supports your net zero journey
- Flexibility in both scale and longevity
Demonstrating your commitment to sustainability
By entering a PPA, your business is demonstrating your overall commitment to sustainability and how you are proactively tackling your carbon footprint.
It enables your organisation to access renewable energy sources and help finance new renewable projects. And by taking action to reduce greenhouse gas (GHG) emissions, you can claim additionality.
Types of PPAs
Onsite
An on-site PPA is a contract where a power producer supplies electricity directly to you (the Offtaker/consumer) at the same location. This is commonly used for small-scale renewable energy projects like rooftop solar or carport installations.
Offsite
An off-site PPA is when the electricity is produced at a different location from where you are based. This agreement is typically applied to large-scale renewable energy projects where the electricity is sleeved into your electricity contract by the energy retail supplier.
Virtual
A virtual power purchase agreement (VPPA) is a financial arrangement which enables you to buy the renewable attributes of a project rather than the actual energy itself.
Portfolio
A portfolio PPA is a contract that allows a power purchaser to purchase electricity from a portfolio of renewable energy projects, rather than a single project, via an energy retail supplier. This type of PPA is often used by companies that are looking to increase their renewable energy options, but do not have the resources to develop their own projects.
How Consultiv Utilities can help
- As independent consultants, we are here to help by providing you with the most suitable advice and solutions for your company
- For larger Offtakers we can support in procuring an agreement from the generator market (35GWh of PPA requirement)
- We can aggregate smaller Offtakers
- We can support you to complete a comprehensive PPA tender, whether that’s direct to a generator (subject to size), or to the supplier market
- We’re able to fully manage the supply contract once the PPA is in place
- We can deliver additional services such as our energy bureau offering and energy and carbon compliance support. Plus you will have access to our online portal and an ongoing account manager
Download our PPA guide
Whether you are already exploring this topic or would like some additional support, we’ve put together this useful PPA guide to help.
Power Purchase Agreements Explained | Download
Power Purchase Agreements - Download
