What is a (C)PPA?
A CPPA is an agreement between a buyer and a producer operating a wind farm or solar park that commits the buyer to purchase electricity for the long-term. Electricity is drawn from the farm during the hours it is actually generating electricity. Agreements usually have a five to fifteen-year term and give the buyer and the producer the assurance of a fixed price for renewable electricity. Agreements from Scholt Energy with producers are known as PPAs and are not directly linked to a buyer.
Purchasing and selling green electricity the smart way
As electricity originates from a wind farm or solar park, its production fluctuates – volumes are naturally reduced when conditions are still or during night-time hours. In that case, the buyer may have to purchase additional electricity from the market in order to meet its energy needs. Scholt Energy ensures that buyers can always purchase what electricity they need without interruption, even if this means purchasing additional generation from the market. For producers, the maximum production capacity of a wind farm or solar park is linked to one or multiple buyers, ensuring that actual production can be supplied at all times.
A CPPA incorporates the following aspects:
- The volume of electricity supplied annually
- The origin of the electricity
- The agreed price for the electricity
- Who bears which risks
- The term of the agreement
Our energy specialists will liaise with you to determine what best matches your business. We will always take into account your business’ energy needs and sustainable goals, as well as the appropriate trading and/or sales method if you are a producer.
Benefits of a CPPA
Price and term certainty
Both the buyer and the producer operating a wind farm or solar park are assured of a fixed price for renewable electricity in the long-term. You have certainty when it comes to your business’ energy needs, or enjoy a stable source of income if you are a producer.
Sustainable enterpreneurship
A CPPA is the most far-reaching form of sustainable electricity purchasing and sale. It also allows a business to achieve its sustainability goals without having to construct its own plant. A producer can supply its sustainably generated electricity directly to buyers.
A positive contribution to the energy transition
Thanks to the financial certainty that they provide, CPPAs are a contribution to the construction of (new) solar parks and wind farms and promote the energy transition amongst businesses.
Interesting in purchasing or selling green electricity directly?
Speak to our specialists. They would be happy to tell you about the options available.
