What is a PPA – Power Purchase Agreement?

What is a PPA?

A Power Purchasing Agreement (PPA) 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.

Do all PPAs have the same structure?

No, 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 PPA solution can go hand-in-hand with creating a positive 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.

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. Ecohz accompanies corporates through each project phase – from the opportunity road map to the signed PPA agreement. We make PPA decisions more accessible for you.

Renewables in the energy mix contribute to SDG 7 and 13

PPA Advisory

Power Purchase Agreements (PPAs) guarantee stable electricity prices and support new renewable energy capacity. Ecohz’ PPA Advisory ensures businesses get the most out of these contracts and guides companies every step of the way, from choosing the right project to negotiating terms that deliver on clean energy and financial targets