Power Purchase Agreement (PPA)

What are PPAs?

A power purchase agreement is a contract between two parties, one which generates electricity (the seller) and one which is looking to purchase electricity (the buyer). The PPA is in place to define all the commercial terms between the parties, which will include when the project will commence, schedule for delivery of electricity, terms and conditions and termination. No matter if you are a generator or an end user of electricity a PPA could be beneficial to you. Energy Management assist in multiply ways to ensure the both parties get the best out of these complex purchase arrangements.

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Signing a PPA is a great way to get ahead on your competitors, showcase your commitment to sustainability, and plan for risks while leveraging value for your organisation.

PPAs are almost exclusively linked with renewable generation as there is currently little to no market for small-scale non-renewable generation. Ultimately, the end user secures electricity at a lower rate than grid supplied electricity plus also securing the enhanced “Green” credentials of purchasing direct from the renewable generator. Additionally, there is no dilution through the transmission and distribution grid or Supplier reconciliation of energy purchases and corresponding “REGO” purchases. It is in effect the “greenest” electricity in the market excluding any renewable generation that you may own operate yourself.

As a “renewable” generator you would have faced considerable costs in bringing the generated electricity to market. Whilst renewable generation projects tend to have extended payback periods, secured income streams such as a PPA bring investor confidence to ensure the project succeeds.
Pitch the PPA at the right price and everyone wins, including the global fight to reduce CO2 emissions.

For more information on PPAs, contact us on 01225 867722 or email sales@energymanagementltd.com.

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Sell electricity:

Energy Management can help you arrange the best PPA’s whether you are a dedicated energy generator or a business with onsite generation. We would also get involved if a customer was offered a PPA – review and whether offer is worth the customers while.

Buy electricity:

If you wish to fix your energy price to ensure guaranteed payments or choose a flexible contract to access market-reflective prices, Energy Management can help you achieve your business targets.

Signing a PPA is a great way to get ahead on your competitors, showcase your commitment to sustainability, and plan for risks while leveraging value for your organisation.