PROVIDING MORE RENEWABLE ENERGY & ELECTRICITY TO THE GRID AND ACHIEVING SUSTAINABILITY GOALS
What is a power purchase agreement? A PPA is a contract between two parties: one who generates electricity (the generator) and one who purchases electricity (the offtaker).
Traditionally, companies procure electricity from utilities. Although many developers and utilities now produce more and more energy from renewable sources like solar and wind, consumers have limited transparency and almost no influence over this energy mix.
However, organizations and corporations are increasingly looking to reduce their environmental footprint and energy costs. This is leading to consumers looking at purchasing directly from renewable energy generators (through so-called Corporate PPAs).
Corporate PPA Market Trends:
- Globally, 100% renewables subsidies are disappearing or being dramatically reduced
- Europe’s market for corporate PPAs is growing. Corporations have signed power purchase agreements for more than 1GW of capacity in 2016, almost tripling the amount signed in 2015
- In a low- or zero-subsidy world, PPA contracts will be the main route to market and will need to be structured to attract both off-takers and investors
- Large multinational corporations are leading these PPA market trends by setting ambitious sustainability and renewable energy procurement goals, and by building the internal capabilities needed to negotiate and sign power purchase agreements for electricity and renewable energy
What are the benefits and advantages of PPAs?
A PPA contract is a win-win solution, helping to deliver more renewable energy to the grid and contribute to achieving sustainability goals.
Key benefits from a zero-emission power purchase agreement:
- Affordability—Power costs broadly in line with own view of future prices and competitive with market
- Scalability—Consumer can expand renewable generating capacity
- Proximity—Generation is now in the same grid as consumption
Which power purchase agreement is right for me?
There are many different possible types and structures of PPA contracts. It can vary according to needs and regions. Reach out to our PPA team at GE Renewable Energy to know more.
Why should I choose GE as a PPA provider?
Are you a corporation, a developer, or an investor? We can assist you in qualifying, scoping, and executing any renewable energy PPA. Take a look at what our company can offer below:
Why a renewable PPA?
Economics – technology efficiency and no fuel supply
Sustainability – help achieving emission reduction targets
PPAs provide risk mitigation and long-term cooperation and partnership, all leading to higher profit.
We provide wind turbine technology, installation, services, and digital capability and can originate the PPA, through our extensive global corporate relationships
A one-stop shop for all parties
When you choose GE to support you with your power purchase agreement, you'll also get access to our company's:
- Digital Wind Farm solution to lower your electricity costs
- Wide portfolio of renewable energy solutions, from onshore to offshore wind turbines to hydropower equipment
- Global footprint and capabilities, as well as energy consulting and finance experience
During the PPA process, GE’s scope and role can be as wide or narrow as you’d like, including, but not limited to:
- Preparing marketing documentation.
- Assessing offtaker’s energy consumption and formulate the vision and strategy for renewable energy and electricity procurement.
- Discussing offtake opportunities with various parties.
- Supporting and coordinating discussions and exchanges with all parties involved.
- Proposing Offtake Agreement Key Terms (price, tenor, volume, offtake structure) and identify the best options.
- Taking part in negotiations to conclude Offtake Agreements.