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Power purchase agreement

‚ÄúA power purchase agreement gives us the opportunity to work together with companies to put their energy supply on a sustainable footing for the long term.‚ÄĚ

What is a PPA?

A power purchase agreement enables a company to enter into a long-term electricity supply contract with a power plant operator. More and more companies are incorporating this option into their energy procurement strategy in an effort to reduce the negative climate effects of their corporate activities by ensuring their long-term purchase of renewable energy.

  • Avoid price fluctuations
  • Economise with green energy
  • Enjoy the benefits of W.E.B‚Äôs many years of expertise
  • You can depend on W.E.B as your partner
  • W.E.B takes care of the whole process, from planning to operation

Adapted to your requirements ‚Äď three types of PPA

A PPA is by no means a rigid arrangement ‚Äď each agreement can be adapted to best suit the customer‚Äôs options and requirements. There are three main types of PPA.

On-site PPAs feature a direct connection. A wind or solar power plant is constructed on the consumer’s premises and then connected to the consumer’s system via a direct line. W.E.B takes care of the project development, construction and operation of the plant and infrastructure. The clean energy produced by the plant is available directly to the consumer. If the system generates less electricity than the consumer’s operations require, W.E.B can supply the remaining power via the distribution grid from its balancing group. If generation exceeds the consumer’s requirements, the unused electricity is fed into the W.E.B balancing group via the public grid.

The physical PPA model also describes a situation where the consumer receives power generated by a wind or solar power plant that is developed and operated by W.E.B. This model differs from the on-site PPA model in that the customer does not receive their electricity directly from the wind or solar power plant, but instead receives it through the public electricity grid.

Financial PPAs provide customers with long-term protection against price increases. By contrast with the other models, power is not supplied directly from the wind or solar power plant to the customer, instead the customer receives their power from the public electricity grid. The price the customer pays for their electricity is agreed in a contract for difference (CfD). This model can be operated across national borders, although this is not currently an option in Europe.

Your contact partner

Antonietta Di Chio
Corporate Account Management | Sales & Customer Solutions | Energy Transition Partners
T+43 664 96 89 279