Power Purchase Agreements
In this day and age, the way every single MWh is generated can make a difference. With Power Purchase Agreements (PPAs) you can ensure that your electricity comes from carbon neutral sources, while enabling the development of renewable energy projects such as wind and solar farms.
How does it work?
A PPA is a legal contract between you, as a power buyer, and an energy generator or provider. Because you can choose generators with solely renewable sources, PPAs can act as clear proof of your energy’s sustainable origins.
PPAs bring you several benefits. They allow your company to reduce its carbon emissions from purchased electricity. They can function as a hedge against volatile electricity prices. Last but not least, they ensure a stable long-term income for renewable electricity producers.
ACT facilitates PPAs between you – the energy buyer – and renewable energy producers. The transactions will include both physical power and renewable energy certificates.
What you need to know
There are several different types of PPA, each with its own characteristics. Working together, we can set up the agreement most suited to your company.
Physical PPA: Direct
Electricity is physically delivered to the buyer from a renewable energy project in the same grid area.
Physical PPA: Sleeved
Electricity is physically delivered to the buyer from a renewable energy project in the same grid area, via a third party (such as a utility or trader).
Virtual PPA: With a Power Price Hedge
A financially settled arrangement between a renewable energy producer and the buyer. Producer and buyer do not need to be in the same grid region.
Your location is key
When it comes to selecting the right PPA solution, location is a crucial factor. For example, if your company is situated in an area that enjoys plenty of sunshine, solar panels could be the way to go. By entering into PPAs your company can benefit from lower electricity costs.
Examples of projects
Buy electricity and the Green claim produced by a Solar farm
Buy electricity and the Green claim produced by a Wind farm
Buy electricity and the Green claim produced by a Biomass plant
Biomethane to Grid project
Buy Biomethane produced with renewable feedstocks and the green gas claim from a Biomethane to Grid project
We will help you set up the right plan that matches your objectives
Want to know what we can do for you?Contact us