International Renewable Energy
Power Purchase Agreements
What is a PPA?
A power purchase agreement is a contract that facilitates the purchase of renewable energy from a wind or solar project between the generator (seller) and an off-taker (corporate buyer). PPA contracts are long-term agreements, typically between 5 and 25 years depending on the market. They can help companies hedge against volatile electricity prices, secure energy supply and are key to reaching your sustainability goals.
How do PPAs work?
Onsite (or near-site) PPAs
This PPA connects the seller and the off-taker via a private wire that supplies the electricity 'behind the meter' to the off-taker's facility. This option is suitable for big companies with high electricity consumption and enough space to build a large scale (mostly solar) project nearby, but it is still unlikely to meet the total demand from a particular facility or be sited in the optimal location for renewable energy resources.
A synthetic PPA avoids the physical delivery of electricity to the off-taker. The most common form is a 'contract for differences' where the electricity is sold/purchased using the open markets and the contract between the seller and the off-taker is based on set strike prices.
Why and where can you enter into PPAs?
Generally, onsite PPAs can be set up in any place or country as long as there is space for the installation and a developer and buyer. PPAs make good business sense if there is either no access to the electricity grid or where existing or future electricity costs are volatile and grid distribution may be unreliable. Companies who purchase electricity by entering into PPAs usually don't need to outlay a high amount of capital. Finding the right synthetic PPA deal can be more challenging as the various international energy markets operate differently and knowing the local regulations and policies is critical. If you want to learn more about international PPAs in the US, India, France, UK, Singapore, Australia or any other market, contact our experts today.
The following map provides and overview of our global solutions. The markets are changing rapidly and we can find/develop new solutions tailored to your specific requirements.