Green Power Purchase
Agreements (PPAs)
Green Power Purchase Agreements (PPAs) give your company the opportunity to directly contribute to the development of new renewable energy projects to cover your energy needs. PPAs can be another pillar to your green energy procurement strategy. Our experts support you in finding the best suited green energy procurement or PPA model to meet your climate targets.
What is a Green PPA?
A Green Power Purchase Agreement, or “Green PPA”, is a contract between a company and a developer or owner of a renewable energy facility. These are long-term contracts that typically last for 5-15 years but can sometimes be longer. They mainly include solar and wind energy but can also have other renewable energy as generation sources.
Companies typically choose PPAs as a solution to sustainably reduce their scope 2 emissions in line with the requirements of global sustainability standards, such as CDP or SBTi. PPAs can also help to mitigate often volatile energy prices.
A Green Power Purchase Agreement that works for you.
A PPA contract is a long-term commitment. The benefits are immense, but there are also challenges. Therefore, jumping in without the proper guidance or preparation is ill-advised. First Climate supports you as your consultant for PPAs— analyzing the market for your needs, developing and managing tender processes, providing technical advice on contract drafts and assisting in negotiations. You will have access to our energy expertise and our network of energy providers and renewable energy project developers that we have built over the past 25 years.
Our green energy and PPA consulting services for you:
Development, implementation, and supervision of tender processes (RFQ/RFP)
International market and project analysis (RFI)
Technical consultation in contract drafting and negotiations
Our Green Energy and PPA Expert Team
Anton Schön
Team Lead
Renewables
What are the benefits of green PPAs?
For corporate buyers, green PPAs can significantly benefit a company’s decarbonization strategy and long-term commitment to a net-zero goal.
But PPAs also have many further advantages. The past few years have shown how volatile the pricing on the energy market can be. This leads to uncertainty for companies, particularly those in heavy industries that rely on large amounts of electricity for operations and production. Companies can tackle this uncertainty head-on by signing a green power purchase agreement, an energy supply contract that provides a long-term fixed price on the power which they purchase. This reduces the financial risks connected to volatile prices, while also avoiding the need for upfront investment or operation and maintenance costs for your own renewable energy assets.
More Benefits for Companies
With a green PPA, your company can have a secure renewable energy supply and can keep its focus on core business activities.
Benefits for Green Energy Suppliers
Renewable energy farm operators also benefit, as they also have a secure, steady income from the company sourcing the energy.
It’s a win-win for the climate, solar and wind farm operators, and your company sourcing the energy!
Green PPA Example
Renewable energy is a core element for many company’s climate journey.
After working with the First Climate Renewables Team to find the right green energy procurement strategy and our client Wieland Group closed on a PPA contract and managed to reduce its scope 2 emissions by around 18,000 tons of carbon dioxide emissions per year.
Read more about this success story here.
"PPAs enable a reliable supply of sustainably generated energy and offer long-term price security."
Anton Schön
Team Lead Renewable Energy
First Climate
Green PPA Consulting with First Climate
Good to know:
The different kinds of PPAs
Depending on the underlying structure, the market usually distinguishes between two types of power purchase agreements: Physical and virtual PPAs
