PPA – Power Purchase Agreement
ECOHZ accompanies corporates through each project – from the opportunity road map to the signed PPA agreement. We make PPA decisions more accessible for you.
A Power Purchasing Agreement is an agreement between two parties wherein a provider of electricity will provide an agreed volume of electricity to a consumer, typically transmitted through the public electricity grid.
Today one will understand PPA as an agreement signed between a consumer – a company or electricity provider – and a developer of a new renewable power project. The off-taker (buyer) commits to purchase the totality or an agreed portion of the new project’s production over a longer term – typically 10 years or more. The underlying idea is that the guaranteed income from this long-term agreement facilitates the financing of the project.
There are a variety of PPA models with different degrees of commitments. Some focus on the physical delivery or price hedging, and some are documented as renewable. The contract duration varies.
Focus on new projects with impact
At ECOHZ we believe that providing the best possible solutions can go hand-in-hand with creating a positive impact. We believe that you should prioritise PPA opportunities with a focus on impact. The race to meet the 1.5° goal needs to accelerate building of new renewable projects. Supporting new projects serves you with enhanced image and creates the best possible impact.
When the signing of a PPA is both strategically aligned with long-term business needs and an attractive option in the relevant market, our advice will always be to identify a “Newbuilt” project and to include the purchase of the Energy Attribute Certificates (EACs). This maximizes impact for the climate and for the business.
Make PPA decisions for corporates more accessible
ECOHZ PPA advisory builds on our unique position in the global Energy Attribute Certificates markets and almost 20 years of close cooperation with the European renewable producers and developers.
We engage with all relevant projects, evaluate the quality, quantify the financials, identify and evaluate risks associated with the different options, leading to the deal structure best suited for each individual case.
We believe one of our advisory roles is to make the PPA decisions more accessible for our customers’ organisations. The way we structure the PPA project process, our fee structure and our engagement with our customers and the project developers – are all influenced by this attitude. While our focus is to secure the best outcome for you, we create confidence through transparent, engaged, direct and clear interaction with all the stakeholders in the project value chain.
Please use the “Get in contact” link in the right column. Our team is ready to engage and go deeper into PPA related questions or interests you may have.