Power Purchase Agreements (PPAs)

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.