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Power Purchase Agreement (PPA) 

Renewable energy for businesses at a fixed price 

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Choose renewable energy for your business while securing your energy costs. Protect your business from market fluctuations and actively contribute to accelerating the energy transition with a PPA.

What is a PPA ?

A PPA (Power Purchase Agreement) is a long-term agreement between a producer of renewable energy installations, an energy supplier and the end customer.

End customer

The end customer (your company) agrees to buy a certain amount of electricity generated by a specific renewable energy facility for a defined period of time at a predetermined fixed price.

Energy supplier

The energy supplier ensures that all the produced energy reaches the end customer and provides all the necessary certificates.

Producer

The producer, such as the operator of a wind farm, receives a guaranteed income stream from the agreement, giving them the security to invest in renewable energy projects.

In short, the main difference between a physical and a financial PPA is that with a physical PPA, your company physically receives the electricity generated, while with a financial PPA, you receive financial compensation for the difference between the contract price and the market price for the electricity, without physical delivery.

Our PPA solutions for large companies

Our PPA solutions for large companies

Physical PPA 

Settlement of the energy produced based on your consumption 

  • Your company becomes the owner of all energy produced by a specific wind turbine (onshore or offshore).
  • You receive the physically generated electricity.
  • You receive the Guarantees of Origin (GOs) for the electricity produced by this/these installation(s).
  • The production profile of the wind turbine is integrated into your energy contract. 
  • All production surpluses, depending on your consumption, are automatically settled on the Day Ahead market.
  • The difference between the Day-Ahead price and the agreed fixed price for the PPA (Contract for Difference) determines whether you receive money (DA price > PPA price) or have to pay extra (DA price < PPA price).  

Financial PPA (virtual) 

Settlement based on total energy produced 

  • Your company becomes the owner of all energy produced by a specific wind turbine (onshore or offshore).
  • You receive the Guarantees of Origin (GOs) for the electricity produced by this/these installation(s).
  • The wind turbine's production profile is not integrated into your energy contract. 
  • The entire production of the renewable installation is settled on the Day Ahead market.
  • The difference between the Day Ahead price and the agreed fixed price for the PPA (Contract for Difference) determines whether you receive money (DA price > PPA price) or have to pay extra (DA price < PPA price). 

In short, the main difference between a physical and a financial PPA is that with a physical PPA, your company physically receives the electricity generated, while with a financial PPA, you receive financial compensation for the difference between the contract price and the market price for the electricity, without physical delivery.

Advantages of a PPA

  • 100% green energy
    PPAs guarantee direct, certified access to green energy, supporting your sustainability objectives.
  • Risk management 
    Protect your business from price volatility.
  • Cost Stability 
    Ensure your business has a fixed or predictable energy price over the long term (5 to 15 years).
  • Stronger reputation 
    Demonstrate to customers, investors and employees that your business is sustainable and forward-looking.
  • Reduce your CO2 emissions 
    Reduce carbon emissions for a specific site or multiple sites simultaneously.
  • Replace a capital expense with an operating cost 
    You do not need to invest in any renewable energy infrastructure, as the green energy producer takes care of the installation, operation, and maintenance of the assets.

Interested in a PPA contract? 
Contact us for a consultation without obligation.  
Our experts will review with you the possibilities for your business.

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Be inspired

Discover the story of Atlas Copco

Atlas Copco accelerates their energy transition with an offshore wind PPA

Atlas Copco accelerates its energy transition thanks to a PPA signed with ENGIE. This partnership will enable the company to power part of its production in Belgium with electricity from offshore wind power, reducing its carbon footprint by 9,000 tons of CO2 per year. This project is in line with their ambitious sustainability goals, including a 46% reduction in global CO2 emissions by 2030. 

Find out how this collaboration is contributing to a greener industry, and get inspired for your own energy initiatives.

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