What are PPAs and cPPAs?

A PPA (Power Purchase Agreement) is a power sales contract directly between consumers and green power generators normally for a long-term period. There are also PPAs in short (2- or 3-year) and medium-term (5- or 8-year) variants. This is not a standard contract, so the analysis of its applicability is based on the general rules governing the energy market and the implementation and operation of RES projects.

Among the 3 models of solutions, we will choose the best one for you:

• on-site – the RES generator’s installation is located directly next to the buyer’s receiving installation,
• near-site direct-wire – through a dedicated distribution line, energy is supplied from a RES installation located in the near vicinity,
• off-site – the classic solution of transmitting electricity via a transmission or distribution network to the operator’s customer from the RES installation.

You can choose from 3 available billing models:

• pay-as-produced – the customer is obliged to pay for any volume produced by the installation and injected into the grid; actual production can be measured from metering equipment; this is the simplest and most commonly used formula for making financial settlements under PPAs;
• pay-as-consumed (payment according to actual consumption) – the volume covered by the PPA is the customer’s actual consumption as measured on the customer’s metering equipment (usually used only in physical PPAs); the risk of volume certainty is on the generator’s side, hence the price of this option is more expensive than in pay-as-produced;
• pay-as-contracted – a specified volume of PPA-covered energy is guaranteed by the generator according to an agreed delivery schedule; volume risk is on the generator’s side, hence the price of this option is usually higher compared to the pay-as-produced option;
• baseload – the generator guarantees in the contract and is obliged to deliver a certain amount of energy (e.g., 10 MWh) for every hour of the year; the profile and volume risk is on the generator (seller), and the customer (buyer) has much more certainty about the amount of electricity and the timing of its receipt under the contract; for this reason, the price of this option is higher than in pay-as-produced.

We will give you an overview of the current market situation, benefits and risks

Concerning contracts for the sale of electricity concluded directly with the RES generator and available models used in the market including PPA contracts with physical or virtual delivery. In accordance with your expectations, we will verify the customer’s consumption profile, the selection of the optimal contract variant (including the period, date of commencement of supply, model, price assumptions) or the selection of the generation source. We will also work out the identification of risks, together with a preliminary determination of the division of responsibilities in the contract (two- or three-party), and prepare the relevant inquiry. After identifying potential business partners, we conduct a tender for the RES generator and PPA provider, and negotiate the contract provisions.