Power Purchase Agreements (PPAs)
Considering a Power Purchase Agreement (PPA) for your business? At GVL Energy, we specialise in helping companies navigate the complexities of securing renewable energy contracts. A PPA is a long-term agreement to purchase renewable energy—such as solar or wind—at a fixed price, typically spanning 5 to 20 years. This arrangement can involve direct contracts with energy generators or be tied to your existing supplier.
By choosing a PPA, your business can achieve price stability while supporting broader sustainability goals. Our expert guidance will help you understand your options, assess the impact on your operations, and select the PPA solution that best fits your needs. Whether you're a small business or a large commercial enterprise, we have the experience to ensure you make an informed decision.
The Benefits of a PPA
Power Purchase Agreements (PPAs) offer significant commercial and environmental benefits:
- Cost Certainty: Lock in long-term energy prices, providing financial predictability for your budget.
- Sustainability Support: Actively contribute to the financing of new renewable energy projects while reducing your Scope 2 emissions.
- Market Stability: Lower exposure to market price volatility, which can be particularly advantageous for businesses in fluctuating energy markets.
- Enhanced Credentials: Strengthen your sustainability credentials and showcase your commitment to achieving net-zero targets.
A PPA is not just a contract; it's a demonstration of your commitment to reducing your carbon footprint and supporting the growth of clean energy.
Types of PPAs
There are several types of Power Purchase Agreements to consider, each tailored to specific needs:
- Onsite PPA: Energy is generated and consumed at the same location—ideal for smaller projects such as rooftop solar installations.
- Offsite PPA: Energy is produced at a different site and delivered through your energy supplier—perfect for larger renewable projects.
- Virtual PPA (VPPA): This financial agreement allows you to buy renewable benefits without taking physical power.
- Portfolio PPA: This option enables you to purchase energy from multiple renewable sources through a single contract, broadening your green energy mix.
FAQs
What is a Power Purchase Agreement (PPA)?
A PPA is a long-term agreement to purchase renewable energy at a fixed price, typically lasting 5 to 20 years.
What are the benefits of a PPA?
PPAs offer cost certainty, sustainability support, market stability, and enhanced credentials for businesses.
What types of PPAs are available?
The main types include onsite PPAs, offsite PPAs, virtual PPAs, and portfolio PPAs.
How does a PPA support sustainability goals?
By financing renewable energy projects, PPAs help reduce Scope 2 emissions and promote clean energy.
Can small businesses benefit from PPAs?
Yes, PPAs are suitable for businesses of all sizes, providing tailored solutions for energy needs.
What is an onsite PPA?
An onsite PPA generates energy at the same location, suitable for smaller projects like rooftop solar.
What is a virtual PPA?
A virtual PPA is a financial agreement allowing the purchase of renewable benefits without physical power delivery.
How can I get in touch with GVL Energy?
You can email GVL Energy at ollie@gvlenergy.co.uk for expert guidance on Power Purchase Agreements.
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