What is a PPA – Power Purchase Agreement?

What is a PPA?

A Power Purchase Agreement (PPA) is a contract wherein an electricity producer agrees to provide a consumer with a given volume of energy –typically through the public grid – at a stable price.

Typically signed for multi-year periods, PPAs guarantee the consumer –known as an off-taker– hedging against volatile energy markets. At the same time, they afford developers a steady, long-term source of income that makes new renewable energy projects, such as solar or wind parks, viable.

Off-takers can commit to purchasing the totality or a fraction of the volume produced by the chosen project. The delivery of renewable energy is documented with Energy Attribute Certificates (EACs) that allow consumers to report reduced Scope 2 emissions. Read more about PPA here.

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.

Read about the different types of PPAs here.

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 over 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

Preben Munch
Senior Director Sales & Solutions