Easily obtain renewable energy each month from a local seller, and achieve cost savings in the process
With a Virtual PPA, a fixed amount of locally produced renewable energy can be purchased each month, with no physical delivery. Receive green energy through the grid without switching supplier and save money with a stable, market-adjustable price plan. Simple
Simply select how much energy you would like to receive from renewable resources short and long term
Virtual PPAs are either derivative contracts or financial hedges and will be reflected in the balance sheet
Assume the difference between a seller-agreed price and market fluctuations, never paying over market prices
A Virtual PPA (VPPA) is a long-term contract for clients that would like to buy an agreed amount of renewable energy each month, without switching energy supplier. The customer agrees the price of energy directly with a renewable producer (PPA price). Equally, at the end of the month, your supplier will send you an invoice for your actual energy consumption. The difference between this invoice and the price agreed with the renewable producer will be paid in a separate settlement between the renewable producer and the final consumer.
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.
For a Virtual 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.
This depends on the volume of energy agreed under your Virtual 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, energy minimums are set per hour so producers may have to rely on suppliers or the grid to fulfill the agreed demand.