Reducing your costs and carbon emissions can be a big challenge. But with a virtual power purchase agreement (PPA), you can secure years of low-cost renewable energy – and create a more sustainable future.

In an era of record inflation, energy shortages, and skyrocketing fossil fuel prices, companies across Central and Eastern Europe are seeking new ways to reduce costs. At the same time, many are setting decarbonization and net-zero targets, driving the need for greater access to clean electricity.

One emerging solution is a virtual PPA, commonly known as a financial PPA. This article explains how these agreements work and how they can help you create a stronger, more sustainable business.

What is a virtual PPA?

A virtual PPA is a long-term electricity agreement (typically 10-25 years) between a renewable energy producer and a company, called an off-taker.

Unlike a physical PPA , a virtual PPA does not involve the direct supply of electricity from the producer to the off-taker. They do not need to share the same power grid and can even be in different countries if their energy markets and regulations allow.

For example, Enery is developing a virtual PPA that will produce renewable energy in Bulgaria for an off-taker in Romania. The agreement allows our customer to secure a large clean energy supply that would have otherwise been unavailable.

In a virtual PPA, electricity is bought and sold at market spot prices and then reconciled at the agreed rate. Here’s an example scenario:

  • Your business signs a virtual PPA with Enery at €70 per megawatt-hour (MWh).
  • If we sell our green electricity into the spot market at €80/MWh and your business buys power at €80/MWh, we refund you €10/MWh in the settlement process.
  • Similarly, if your spot market price is lower than the PPA rate, your business pays Enery the difference.

Enery’s virtual PPAs are certified renewable energy contracts. Each MWh of clean electricity includes a guarantee of origin, where available.

What are the benefits of a virtual PPA?

A virtual PPA allows you to secure low-cost clean energy without any capital investment. As Enery is responsible for building and operating the asset, there are no construction, connection, or maintenance costs.

The fixed-price agreement shields your business from price rises and market volatility. As the clean energy asset does not supply your facility directly, you do not need to upgrade your infrastructure or electrical supply.

Environmentally, the agreement significantly reduces your carbon footprint and contributes to your ESG or net-zero goals. More broadly, PPAs expand green energy in Central and Eastern Europe, where many countries still rely on fossil fuels. Virtual PPAs directly fund new solar PV and wind projects, accelerating the transition to sustainable energy.

Why is a virtual PPA a smart choice for your business?

As a virtual PPA does not require you to share a power grid with the clean energy asset, you can access renewable energy no matter where you are.

They are also ideal for large organizations with multiple sites. These include companies with several warehouses or factories, or restaurant chains spread across different regions. Instead of installing a renewable energy asset on each location or signing multiple physical PPAs, a virtual PPA aggregates the financial and environmental benefits.

For example, Enery recently signed a virtual PPA with the iconic beer company Asahi Europe & International. It will supply its Romanian breweries with clean energy from a new 50 MW solar PV park. The virtual PPA is a critical step in the company’s mission to make its 19 European breweries carbon-neutral by 2030.

A green PPA also enhances your corporate image and shows your commitment to a healthier planet. With more customers, employees, and stakeholders seeking companies with strong environmental values, a PPA gives you an advantage in the competitive global market.

The benefits of partnering with a clean energy producer

Forming a long-term industry partnership with a renewable energy developer unlocks additional financial and environmental benefits. For example, your company may not have roof space for a solar PV system or be in a region with limited sunlight hours. A virtual PPA provides clean energy from a larger, more efficient solar farm with higher production.

Through Enery’s renewable portfolio optimization, we construct projects in specific geographical locations. This approach enhances their performance and efficiency, minimizing the cost of each megawatt-hour delivered.

Our clean energy projects also support a diverse range of community and biodiversity initiatives. They ensure your PPA delivers more value to people and the environment while creating a better world for future generations.

Ready for a sustainable future? Talk to Enery’s PPA experts

A virtual PPA makes it simple and affordable to embrace sustainable electricity – but only with the right industry partner.

Enery is one of the leading renewable energy developers in Central and Eastern Europe. We have a growing portfolio of zero-emission projects, including solar PV, wind, hydropower, and battery storage.

Working together, we can create a customized agreement that meets your financial and sustainability goals. If you’d like to discover more about a virtual PPA, contact our team.