Power Purchase Agreements (PPA) are a long term agreement between a business that wants to buy 100% renewable energy and the energy provider. A PPA can help your business to achieve your Net Zero targets and work towards a greener future. It also shows that you’re committed to CSR.
With energy prices at an all time high, PPAs are well below the market levels, so now is the best time to find out more about how a PPA can help.
PPA’s are complex. They require careful consideration of the existing supply agreement, the usage profile, and the sleeving process to ensure effectiveness and maximise the cost efficiency. Consultus has the knowledge and expertise to provide this service for you.
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Why choose Consultus?
Our award winning Net Zero Pathway tool can support you on your journey to a greener future and to reach your Net Zero goals.
A Power Purchase Agreement (PPA) will help you to go greener and achieve your net zero targets, improving your energy security and reducing market price risk.
PPA are long-term agreements between an energy consumer who wants to buy 100% renewable energy and the power producer.
Onsite PPA arrangements
These deliver the greatest benefits. Providing renewable energy with no third party charges, generation assets are physically installed and commissioned “behind” the metering point of an energy consumer and precisely specified to meet a site’s real-life demand and profile.
Industry best practice is to outsource PPAs to a third party who manages a project and ongoing operations.
- Personalised agreements on the amount of electricity supplied, price and governance of supply.
- Long-term price certainty for 5, 10 or 15 years.
- PPAs can be physical where energy physically flows from generator to user or financial where supply is managed through the balancing and settlement system.
- Onsite generation plant are typically funded by the energy consumer and delivered via a turnkey solution with a trusted provider.
- Options include direct wire connections and private wire from adjacent generating plant.
- Excess energy can be sold back to the market.
- Energy can also be sleeved into or offset against an existing energy supply contract.
What do we do?
Our Net Zero Pathway tool enables you to understand how private wire and PPAs fit within your net zero mix. We can then help with planning, evaluating site options, feasibility studies, investment grade audits (IGAs), carbon emission impact reports, analysis of cost savings, Board Packs, project management, network upgrades, funding, and tendering and settlement.
Consultus expertise includes:
- Construction and contracts including access to funding, wayleaves, access rights, title and deeds, operation and maintenance of infrastructure.
- Connection agreements covering how and where projects are hooked-up to the grid.
- Supply agreements including volumes and pricing of energy to be generated or provided, and accounting for the costs of renewable incentive schemes (ROCs, FiTs, REGOs).
- Customer supplier contracts that often need renegotiating based on import of PPA volumes, take or pay clauses, etc. using anticipated generation profile, and balancing risk.
A turnkey solution for onsite generation
Our experience and resources in Energy Resilience means we can provide a complete solution to private wire. This combines world-class design and installation of prime generating equipment with unique trading and energy optimisation services.
Grid access to PPA
This is another type of physical PPA: generation assets do not directly supply an energy consumer but an agreement is made between generator and consumer to buy a set volume of energy. Electricity can be supplied through the normal network and balanced through the settlement system. This option means that generation assets may or may not be close to an energy user’s site.
With no direct connection between generator and energy consumer, this popular flexible option has simpler contractual arrangements than a physical PPA but delivers similar benefits, including green energy and energy security.
In financial PPAs, electricity is not supplied direct from green generating plant to consumer. Instead, the power produced is traded on the wholesale energy market. Electricity is accessed from the grid in the usual way, which means it is still subject to the usual third party charges. Generator and consumer agree a price per kilowatt-hour, as with a physical PPA.
We use numerous world class e-tendering platforms that connect energy consumers with 400+ greener generators, projects and initiatives globally – more options and greater choice in virtual power purchasing.
What do we do?
Our Net Zero Pathway tool enables you to see how virtual agreements fit within your net zero mix. The degree of personalisation is up to you, your energy usage and net zero aspirations.
Our experts can help you understand the market and options available, identify and select initiatives, and provide enhanced strategy support including supplier selection and sleeving within existing supply contracts.
As well as international e-tendering platforms, we directly manage diverse generation projects and assets, offering virtual agreements including the energy produced. Consultus is in the delivery stages of a megawatt solar project in southern England that will come online soon.
Flexible CPPA options open to you
Solo – for energy users in excess of 30 GWh, this virtual option provides the widest variety of project types, with terms from 7-15 years. Choose from numerous technologies and locations to meet your preferences, usage patterns and net zero aspirations, including solar energy, offshore wind farms and tidal power.
Partner – energy consumers using more than 10 GWh are grouped with 2-3 other organisations with complementary usage patterns and renewable project preferences. A diverse range of green generation projects and terms are available.
Club – energy consumers using less than 10 GWh benefit through a shared consortium approach, taking energy from a more limited range of green generation projects and terms.
UK power prices in October were 300% higher than the average PPA Offer price*
*Stat from Zeigo’s PPA outlook