Power Purchase Agreements

Secure your energy future with Long-Term PPAs

Understand how Power Purchase Agreements work, their benefits, and how they can provide price stability and sustainability for your organization

70%
Cost Predictability
15+
Year Agreements
40%
Carbon Reduction

What is a Power Purchase Agreement?

The essential contract that defines how energy is bought, sold, and delivered

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The Foundation of Energy Transactions

A Power Purchase Agreement (PPA) is a long-term contract between an energy producer and a buyer, establishing all commercial terms for the sale and purchase of electricity. These agreements typically span 10-20 years and define the conditions of the relationship including:

  • Energy delivery schedules — When and how much energy will be produced
  • Pricing mechanisms — Fixed, floating, or hybrid price structures
  • Energy attributes — Renewable energy certificates and credits
  • Delivery points — Where energy ownership transfers
  • Contract length — Duration of the agreement
  • Performance guarantees — Output and availability commitments

 

PPAs provide crucial financial security for project developers while offering energy buyers long-term price stability and predictable energy costs. Whether you’re a corporate entity seeking to reduce carbon emissions or an energy producer looking to secure financing, understanding PPAs is essential in today’s energy landscape.

We want to make it easier, faster and more worthwhile to get PPAs.

We strive to offer a myriad of alignment opportunities, ensuring every participant can secure a PPA that not only meets their needs but also propels them towards a greener, more sustainable future. 

Types of Power Purchase Agreements

Different PPA structures to meet various organizational needs and market conditions

Physical PPAs

Direct agreements where physical electricity is delivered to the buyer from a specific generation facility.

Direct energy delivery from generator to buyer
Requires physical connection or proximity
Includes energy and all associated attributes
Can involve on-site or near-site generation
Suitable for buyers with significant load
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Virtual PPAs
💼

Financial contracts that provide the economic benefits of renewable energy without physical delivery.

Financial settlement mechanism
No physical electricity delivery required
Generator sells electricity into wholesale market
Buyer receives RECs and price hedging benefits
Offers flexibility across geographic regions
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Sleeved PPAs
🔄

Agreements where a utility or third party intermediary sits between the generator and the end buyer.

Utility or third party "sleeves" power to buyer
Intermediary handles balancing and regulations
Reduced complexity for buyer
Simplified billing and administration
Ideal for buyers without energy expertise
Learn More

Key Benefits of Power Purchase Agreements

Why organizations of all sizes are turning to PPAs for their energy procurement

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Price Stability & Predictability

Lock in electricity prices for 10-20 years, protecting against market volatility and creating budget certainty for long-term planning. PPAs provide a hedge against rising energy costs.

🌱

Environmental & ESG Benefits

Meet sustainability goals and reduce carbon footprint with renewable energy sourcing. Secure verifiable RECs and carbon reduction to support ESG reporting requirements.

📈

Potential Cost Savings

Renewable energy costs have declined significantly in recent years, making PPAs potentially cheaper than conventional power sources in many markets.

🔒

Energy Security

Secure your energy supply from dedicated generation sources, reducing dependency on grid volatility and ensuring consistent power for your operations.

🏢

Brand & Reputational Value

Demonstrate corporate sustainability leadership and strengthen your brand with customers, employees, and investors who increasingly prioritize environmental responsibility.

⚙️

Operational Flexibility

Modern PPAs offer various structures to accommodate your specific needs, from full energy procurement to partial volume coverage with complementary grid supply.

The PPA Process: From Exploration to Execution

Understanding the key stages in developing and implementing a successful Power Purchase Agreement

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1

Assessment & Strategy

Evaluate energy needs, sustainability goals, and market opportunities to develop a tailored PPA strategy aligned with organizational objectives.

2

Project Selection

Identify suitable energy generation projects based on technology, location, economics, and developer credibility to meet your specific requirements.

3

Contract Negotiation

Develop and negotiate key contract terms including pricing structure, volume commitments, delivery points, and risk allocation between parties.

4

Implementation

Finalize agreements, establish monitoring systems, and integrate the PPA into your energy portfolio and sustainability reporting framework.

5

Ongoing Management

Monitor performance, manage settlements, ensure compliance, and optimize the agreement throughout its multi-year lifetime.

European PPA Market Insights

Current trends and developments in the European power purchase agreement landscape

Growing Market Momentum

The European PPA market continues to experience significant growth, driven by corporate sustainability commitments, favorable economics, and supportive policy frameworks. Companies across sectors are increasingly turning to PPAs as a strategic energy procurement tool.

19 GW
New Contracted Capacity in Europe (2024)
51%
Year-over-Year Growth
€45-65
Average PPA Price (€/MWh)
12.4 Years
Average Contract Duration

Solar and wind dominate the European PPA landscape, with significant activity in Spain, Germany, Italy, and the Nordic countries. Multi-buyer aggregated PPAs are gaining traction, allowing smaller organizations to participate in the market.

European PPA Market Map showing wind and solar facilities across Europe

Empower Your Energy Decisions Today​

Contact us for a personalised demonstration and discover how our platform can revolutionise your approach to PPAs.

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