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About PPAs

Safeguard against future energy price rises, achieve your sustainability goals and create goodwill with employees and customers.

What is a PPA?

Companies around the world are gaining an advantage by buying their power directly from renewable sources through a Power Purchase Agreement (PPA). This is a contract covering a fixed term that guarantees you an agreed amount of electricity at an agreed price. Since 2015 over 21GW of PPAs have been signed worldwide by the most forward-thinking companies and RES is proud to have supported many of them.

How will a PPA benefit my company?

A PPA will benefit you in many ways:

  • Financial: By fixing some or all your annual electricity costs, you are protecting against future energy price rises. In an unstable global economy this can provide peace of mind and protection against factors outside your control. And, with renewable energy now the lowest cost generation, RES will provide the most competitive costs in the market.
  • Sustainability: PPAs are one of the fastest ways to achieve your sustainability goals. We can provide accurate information about the huge amount of carbon a PPA will offset and live data on the amount of green power a renewable project is generating.
  • Reputation: A PPA will ensure you receive the sustainability recognition you deserve and that you stand out from competitors. Plus, your customers will feel good about using your products and services.

Why RES

Whatever your motives, RES has the experience to help you maximise the benefits of a PPA. As the world’s largest independent renewable energy company, we have a proven track record of delivering projects and are well respected by financial institutions in every country in which we operate. Read more about RES.

We have already supported the ambition of companies such as General Mills, Microsoft, Telstra, Coca Cola Amatil, General Motors and Google by signing over 1.5GW of PPAs. As a global company, we have a worldwide portfolio of renewable energy projects constructed or in development. For those with a larger energy requirement, we can club projects together, which could help reduce the number of companies you’re contracting with.

Our global experience means we can help you navigate the complexity and time involved in understanding and agreeing a PPA contract, and as a major player in the PPA market we can also offer you a range of options – you can choose the type of PPA, the renewable energy technology, the duration and the contracting structure.

Read about how one of Australia’s largest companies benefited from a PPA

Find out more

Types of PPAs

Virtual PPAs

A virtual power purchase agreement, is a purely financial contract whereby the offtaker exchanges a fixed-price cash flow for a variable cash flow and often renewable energy credits. Over 80% of power purchase agreements signed with corporate offtakers in 2019 were “virtual” PPAs that do not involve physical delivery of electricity. The project owner enters into a VPPA with a corporate offtaker. The project pays the corporate offtaker the floating revenues it receives from the electricity sales and exchanges this for fixed payments received from the corporate offtaker.

Physical PPAs

Physical or ‘Sleeved’ PPA structures see power physically delivered to the buyer – either directly from the seller, or via a utility partner. This arrangement usually sees the buyer enter into two separate PPAs: one with the seller, and one with a utility that will act as an ‘agent ’to manage the offtake of power from the renewable energy project on the buyer’s behalf. A key advantage is that it enables the buyer to account for intermittency of output from the renewable energy project.

We’re here to help fast forward your understanding of the renewable energy landscape and PPA deal structures, so please get in touch.

Our team can meet your needs

Annie McClelland
USA Annie McClelland +1 (303) 439 4645
Stephen Cookson
Canada Stephen Cookson +1 (438) 266-1904
Matthew Hayball
Australia Matthew Hayball +61 2 8440 7433
Caroline Gilpin
UK&I Caroline Gilpin +44 282 844 0581
Nicolas Lanoue de Menthon
France Nicolas Lanoue de Menthon +33 432 760 345
Britta Ersman
Nordics Britta Ersman +46 31 339 5907
Doga Baydur
Turkey Doga Baydur +90 212 240 1188
Ulrich Fischer
Germany Ulrich Fischer +49 7666 942 99 70

Contact us

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