What is a Power Purchase Agreement (PPA)?

In the rapidly evolving world of renewable energy, with more unsubsidised projects coming onto the grid,  the Power Purchase Agreement (PPA) has emerged as the cornerstone of financial stability.

The Basics: Defining the PPA

A Power Purchase Agreement is a contract between two parties:

1. The Seller: Typically an independent power producer (IPP) or a renewable energy developer.
2. The Buyer: Often an energy supplier, otherwise known as an offtaker or utility, or a large corporate.

The agreement defines the conditions under which electricity is generated and sold. It covers the volume of energy to be supplied, the price, the duration of the contract, and the allocation of risks.

Why are PPAs Important?

• For Generators: A PPA provides a predictable revenue stream, which is often a prerequisite for securing project financing from banks or investors.
• For Buyers: It offers price certainty for that portion of energy that the utility company will supply. Additionally, for corporate buyers, it is a primary vehicle for meeting Sustainability and ESG (Environmental, Social, and Governance) goals.

How Renewable Exchange Simplifies the Process

Traditionally, negotiating a PPA was a manual, opaque, and time-consuming process. Renewable Exchange has digitised this journey.

Our platform allows generators to upload their asset data and receive competitive bids from a network of over 30 offtakers. By bringing transparency and competition to the market, we ensure that renewable energy assets receive the best possible PPA price. We have facilitated over 3,000 PPAs, ranging from short-term utility PPAs to bespoke long-term agreements.

Contact us below:

Email - contact@renewable.exchange

Phone - 0117 405 7931

Or fill out this registration form