PPA - Power Purchase Agreement

The PPA -Power Purchase Agreement- is a good alternative for companies that want to access photovoltaic self-consumption without the initial investment and avoid the volatility (increases and decreases) in the price of electricity. It is an option that involves a power GENERATOR and a BUYER signing a clean energy sales agreement for a long period of time. Normally the PPA agreements last for about 20 years, although in Spain in the majority of cases they last for between 5 and 10 years.

WHAT ARE THE ADVANTAGES OF THE PPA OPTION FOR YOUR COMPANY?

With this type of agreement, the power generator company guarantees a stable electricity price so that the consumer can estimate their electricity costs long-term as accurately as possible.

◾️ Zero initial investment.

◾️ Zero debt.

◾️ Energy price stability, because the power generator guarantees a stable electricity price so that the consumer can estimate their electricity costs long-term as accurately as possible.

◾️ This means that the company can plan costs long-term.

◾️ Savings on investments and maintenance expenses.

◾️ Savings on electricity right from the start.

◾️ Reduced CO2 emissions.

DIFFERENT TYPES OF PPA

There are two different types of power purchase agreements available: Physical and Financial:

A Physical PPA is when there is a direct power supply between the renewable energy system and the consumer, which is off-grid.

A Financial PPA is when a buyer acquires the rights for the electricity generated by a renewable energy system, regardless of where it is located and always uses the electrical grid to exchange this power.

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At Cubierta Solar we work with investment funds, multinationals and electricity suppliers that establish PPA products for industrial self-consumption. We take care of finding the best economic proposal for each client.