Connecting The Dots: Common Questions About Corporate Power Purchase Agreements

This blog is the first in our “Connect the Dots” series, intended to provide insight into how clean energy solutions connect companies to a variety of business advantages. In today’s installment, we will answer the most common questions about how corporate power purchase agreements (PPAs) work, and how they can advance your energy strategy. Stay tuned for next month’s blog highlighting the value of Energy Attribute Certificate (EACs).

What is a PPA?

A power purchase agreement (PPA) is a long-term (12-20 years) contract between a renewable energy developer and a dedicated, creditworthy buyer. PPAs enable developers to secure financing for new wind or solar projects and allow buyers to save money on their energy costs by locking in predictable pricing from clean energy sources.

Who Are PPA Buyers?

Commercial, industrial, and institutional (C&I) buyers first began using PPAs in 2008.  Since then, these buyers have collectively brought nearly 6GW of renewable energy to the global grid.  Corporate power purchase agreements have the potential to insulate C&I buyers against volatile conventional fuel costs, result in significant emission reductions, and help buyers meet sustainability goals by stimulating renewable energy development.

What is a Direct vs. Virtual PPA?

Direct PPA projects are located in the same grid region as the buyer’s operations, and the buyer takes direct delivery of the clean energy from the grid. Virtual PPA projects can be located anywhere, and the buyer does not take physical delivery of the clean energy. Both types of PPA buyers retain the financial and environmental benefits of their purchase.

How Can Renewable Choice Connect You to PPAs?

Our PPA team has over 60 years of combined experience in strategic renewable energy acquisition.  We are a global buyer’s agent with long-standing wind and solar power developer relationships.  We’re trusted experts at providing your company with the best choice of risk-mitigated, financially attractive PPA projects. Contact us today to learn if a PPA is right for your company.


Want to learn more about how corporate power purchase agreements drive value? Download our white paper: Accelerate Your Energy Strategy with Power Purchase Agreements

The post Connecting The Dots: Common Questions About Corporate Power Purchase Agreements appeared first on Renewable Choice Energy.

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