Power Purchase Agreements
Secure fixed price renewable energy from the source and support investment in green infrastructure development.
What is a power purchase agreement?
Power purchase agreements are contracts between an energy buyer and seller. They agree to buy and sell a certain amount of energy from a renewable source in advance of it being produced. This is done for a fixed price (£/MWh) over the duration of the contract, usually between 5 and 30 years.
Why use a power purchase agreement?
Energy prices can vary frequently and significantly. As often as every half hour and as much as 200% in a year. Power purchase agreements provide fixed energy costs for purchasers to avoid this price volatility and reduce risk exposure. PPAs also offer a guaranteed income for renewable energy generators, helping to incentivise investment in new green energy infrastructure projects.
Renewable energy infrastructure projects were previously funded in part by subsidies and financial incentives from government initiatives such as the feed-in-tariff. However, in recent years this has shifted away from subsidies, to more of a focus on open market led investment using PPAs.
Who is best suited to power purchase agreements?
Power purchase agreements are best suited to larger energy consumers who are seeking to secure a fixed price for their energy procurement, in a long-term contract. PPAs are also ideal for businesses concerned about the environmental impact of their energy consumption and want to secure sustainable supplies to help invest in the transition towards renewables.
How can we help with power purchase agreements?
We can help your business by negotiating power purchase agreements on your behalf, through our network of accredited partners. Our expertly sourced PPAs will secure you the optimum price for your energy, fixed over the duration of the agreement. Get in contact with one of our PPA consultants today to find out more about how we can help your business become more financially and environmentally sustainable.
What are the benefits of power purchase agreements?
- Manage the risk of volatile energy markets with fixed long-term prices
- Help to achieve NetZero emissions targets and Renewable Obligations
- Incentivise investment in renewable energy infrastructure projects
- Improve corporate social responsibility and environmental credentials
