We introduced Lightning PPA to make the PPA execution process quick and easy every time.
With Lightning PPA, a winning bid can be accepted and the deal finalised on the Renewable Exchange platform with just one click.
Here’s all you need to know about Renewable Exchange’s Lightning PPA.
In this post:
- What is Lightning PPA?
- Why use Lightning PPA?
- Who am I contracting with when using Lightning PPA?
- How do I use Lightning PPA?
- What if I want to include special terms & conditions?
What is Lightning PPA?
Lightning PPA is a digitally-signed power purchase agreement which standardises the terms of sale for the buyers and sellers of energy using the Renewable Exchange platform. (Previously known as Standard form PPA).
It is a fully binding contract, specific to the site tendered, which details all the relevant information for the power purchase agreement.
Lightning PPA is digitally-signed by both parties via the platform.
You can opt-in to using Lightning PPA in your account settings at any time before launching a tender.
Lightning PPA was written independently by a Bristol-based law firm to ensure the contract is fair and transparent to both sides.
Why use Lightning PPA?
Traditionally, once a generator accepted an offer from an offtaker (energy buyer), the offtaker would need to prepare all relevant documents and a custom power purchase agreement. In this time, the power market could change. This meant that the offtaker may have needed to revise the price offer to reflect the market changes. A refreshed price would often be lower, putting the generator at a disadvantage.
Lightning PPA lets you execute the tender with one click, immediately securing the price you see.
- With Lightning PPA, when a generator accepts a price offer on the platform, a legally binding agreement is immediately formed between them and an offtaker. This reduces the risk of revised offering post bid acceptance.
- Lightning PPA sets standardised terms and conditions which only require you to review the document once. This saves time and resources and provides you with confidence on the terms of contract used.
- Lightning PPA is a digital contract – it doesn’t need to be printed or physically signed making the execution a quick and easy process.
- Lightning PPA allows for custom pricing requirements and special conditions to be created, giving you the full flexibility to create a site-specific contract.
Who am I contracting with when using Lightning PPA?
Lightning PPA is a standardised contract introduced by Renewable Exchange to facilitate the execution between the generators and the offtakers.
By using Lightning PPA, you’re still contracting directly with the offtaker signing the contract. Renewable Exchange does not contractually act as an intermediary.
How do I use Lightning PPA?
You are able to start using Lightning PPA immediately. You can review the document before finalising the tender or review a blank Lightning PPA form in your Account tab (on the left-hand side panel).
Note: to execute with Lightning PPA, both you and the offtaker of your energy must accept the document. Look for a blue badge next to their name in the tender results screen to see whether you can instantenously execute with Lightning PPA:
If an offtaker has not accepted the Lightning PPA terms, you will still be able to choose them as the winner but, upon acceptance, you will have to wait for the offtaker to submit their own contract and follow the traditional route of completing the transaction.
What if I want to include special terms & conditions?
Special terms and conditions can be added to Lightning PPA. If you need these to be added in, get in touch with our team – they will be happy to assist. The special conditions will then be denoted in Part 1 of the Agreement.
Any questions? Get in touch with our team by calling +44 (0) 117 405 7931 or emailing [email protected].