Power Purchase Agreements
Long-term power purchase agreements for electricity from renewable energy sources.
What is PPA?
A Power Purchase Agreement (PPA) is a long-term contract between an electricity producer and a corporate client for the supply of energy at pre-agreed terms. The model provides cost stability, predictable planning, and guaranteed access to green energy.
PPAs are a well-established instrument across the EU, supporting corporate decarbonisation, emissions reduction, and compliance with European ESG standards.
On-site
A model in which an energy system is installed directly at the customer’s site, such as on a rooftop, parking area, or other suitable location. The customer does not invest in the equipment, but simply uses the generated electricity at a pre-agreed price. This provides lower energy costs, price predictability, and direct access to green energy.
Off-site
A model in which electricity is generated at a renewable energy facility located outside the customer’s site. The customer does not invest in the construction or equipment, but purchases the energy under a long-term agreement at a pre-agreed price. This provides price predictability, access to green energy, and the ability to cover larger energy demand.
Virtual
Virtual PPA is a financial model in which there is no physical delivery of electricity between the producer and the customer. A fixed price is agreed, and the difference between that price and the market price is settled financially. This provides greater stability and supports investment in renewable energy.
Benefits of PPA
-
Cost predictability through long-term fixed or agreed pricing mechanisms.
-
Improved long-term planning of energy costs and budgets.
-
Enhanced energy security through guaranteed supply under agreed terms.
-
Improved competitiveness through greater price stability and cost control.
-
Access to 100% green energy from renewable sources.
-
Reducing the carbon footprint and achieving ESG goals.
How the PPA model works
Who is PPA suitable for?
Industry
Logistics and trade centres
Technology sector and data centers
Food and Beverage
Office and Commercial Buildings
Frequently Asked Questions
-
How does a PPA wor
A PPA is a long-term agreement under which an electricity producer supplies power to a customer under pre-agreed terms related to price, duration, and volume.
What is the minimum term of a PPA? -
What is the minimum term of a PPA
The minimum term depends on the contract structure and the client’s needs, but PPAs are typically signed for several years in order to provide price stability and predictability. -
What are the main benefits of a PPA?
A PPA provides cost predictability, protection against market volatility, access to green energy, and support for long-term financial and sustainability planning. -
Who is a PPA suitable for?
Who is a PPA suitable for?
A PPA is suitable for companies with high or predictable electricity consumption that are looking for long-term price stability, access to green energy, and support for their sustainability and ESG goals. It is particularly suitable for industrial businesses, retail chains, logistics facilities, manufacturing companies, and organizations with a long-term planning horizon.