Ekhi

What is a Offsite PPA for renewable energy and how does it work?

A Offsite PPA is an energy supply service where the economic transaction takes place directly between producer and consumer. The producer sells the energy produced to an end customer, delivering it through the transmission/distribution grid (offsite). The PPA price is usually set independently of the daily market price (although there are floating price structures that may be linked to the market).

What is the difference between a Virtual/Financial PPA and a Offsite PPA?

One of the main differences is the way that they are sold, i.e. the economic transaction. In Virtual/Financial PPAs, a renewable producer determines its energy prices based on the energy market (OMIE), while in a Offsite PPA, the producer determines the price independently.

How is the price of energy negotiated in a Offsite PPA and how does it compare to the market price?

The energy prices in Offsite PPAs are typically determined directly between a producer and seller, independently from the market price. However, in some cases Offsite PPAs use floating price structures that are linked to market prices. Offsite PPAs are considered Buy-Sell agreements where ownership of the energy is transferred to the consumer for an agreed price.

Is the renewable energy produced the same energy used in my company?

This depends on the volume of energy agreed under your Offsite PPA contract, as there are different profile alternatives. The most common one is the Pay As Produced (PAP) model where an end client buys a percentage of a plant’s energy generation. They set monthly or yearly minimums to ensure a base quantity, but this can vary by hour. Another alternative is a Solar Profile (SP) model, where energy minimums are set per hour so producers may have to rely on suppliers or the grid to fulfill the agreed demand.

Are there infrastructure requirements for procuring renewable energy in a Offsite PPA?

For an Offsite PPA, the energy generation facilities (where the energy will come from) are renewable parks based in a national location, and this energy produced will be injected to the grid. The energy will reach your company through the existing transmission and distribution network, so no extra technician is needed on the customer's side.

Frequently Asked Questions

Offsite PPA

Categories

Any questions?

Frequently Asked Questions

Offsite PPA

Categories

As a Service Models

Onsite PPA

EPC

Battery Storage

Offsite PPA

Virtual PPA

EV Chargers

Any questions?