A power purchase agreement (PPA) is an effective and rewarding clean energy contract – but not all are created equal. Find out how to secure the best PPA for your company and the environment.
In today’s ever-changing business climate, minimizing costs and carbon emissions is critical to long-term success. That’s why many companies across Central and Eastern Europe are considering a green PPA: a long-term electricity contract between a business and a clean energy producer.
With a PPA, you can secure a certified, long-term renewable energy supply that reduces operating costs and directly supports your ESG and decarbonization targets.
But what influences the benefits of a PPA, and how do you secure the best deal? Let’s take a look at the most important factors you should consider.
Select a reputable clean energy partner
Selecting the right supplier is the crucial first step in creating a successful PPA. Your agreement can last up to 25 years, so it’s critical to partner with a respected clean energy producer with a sustainable long-term vision. Ultimately, the PPA should be a rewarding industry partnership that benefits both parties long into the future.
Enery is one of the leading renewable energy developers in Central and Eastern Europe. We have a diverse and rapidly expanding portfolio of clean energy projects backed by the Three Seas Initiative. The fund’s recent equity commitment allows us to invest €1 billion in our region’s energy transition in the coming years, including our 7 GW development pipeline.
Understand your energy consumption and priorities
Before negotiating a PPA, it’s vital to analyze your company’s electricity demands and identify what you want to achieve. For instance, are you looking for a consistent baseload energy supply, or something that matches your specific hour-by-hour consumption?
Once we understand your energy profile, we can design a PPA that meets your current and long-term objectives. For example, some companies use most of their electricity during daylight hours, which aligns well with the output of a solar PV farm. However, for larger 24-hour operations, it may be better to create a PPA combining multiple renewable sources, such as solar PV, wind, and even battery storage.
Decide whether you want a “physical” or “virtual” PPA
As we covered in a recent article , there are two types of PPA: physical and virtual. Selecting the right model can deliver the greatest financial and environmental benefits with minimal risk.
For instance, physical PPAs supply clean electricity directly, either via the power grid or an on-site connection. These agreements can be simpler in nature but limited regarding their availability and energy delivery profile. On the other hand, virtual PPAs do not directly supply electricity, instead using a model that reconciles electricity costs using market rates. These agreements can be more complex to structure but provide greater flexibility, especially for larger companies with multiple locations.
Of course, Enery’s PPA experts can provide helpful advice and identify the optimum PPA model for your business. For more information, contact our PPA team.
Insist on a PPA tailored to your specific needs
As every business is unique, there is no effective “one size fits all” approach to designing a PPA. Instead, we work closely with you to understand your specific energy, environmental, and organizational priorities, and then tailor a PPA to your needs.
For example, is your PPA specifically to lower your energy costs, or is it part of an ESG or net-zero initiative? Or are both factors equally important? And do you expect your energy consumption will remain steady in the future, or is your company looking to expand?
Working with an experienced and dedicated clean energy partner ensures your PPA perfectly suits your organization and delivers years of cost and carbon savings.
Choose a PPA that gives back to people and the environment
Along with supplying carbon-free energy, leading PPAs also deliver meaningful social and environmental benefits. These measures ensure your clean energy commitment goes further to support ESG programs that make a lasting impact.
At Enery, we seek to make all our clean energy projects an overwhelming force for good. That’s why we invest money back into community programs to improve people’s lives and biodiversity projects that build stronger natural ecosystems.
For example, our environmental initiatives include hosting sheep grazing, beehives, and pollinator fields at many of our solar PV sites. We also support community projects across Central and Eastern Europe, including educational initiatives, flood-relief programs, and non-profit organizations helping children and families.
You can discover more about our social and environmental projects in our 2022 sustainability report.
Ready to embrace green energy? Talk to the PPA experts
As you can see, there are many important factors that can influence the effectiveness and overall value of a green power purchase agreement.
If you want to learn more about how Enery can accelerate your energy transition, contact our PPA team or read about our renewable energy projects.
With teams in Austria, Bulgaria, Romania, Estonia, Czech Republic, and Slovakia, we have the people, expertise, and technology to help you realize a net-zero future.