The advantages of a direct PPA or Corporate PPA for a windfarm / solarfarm or corporation, datacenter or industry are shown below.
The advantages for windfarm/solarfarm are:
- Avoided retail margins on power. Direct long-term sale.
- Avoided retail margins on green certificates. Direct long-term sale.
- Price guarantee options. End-user is the natural risk owner for low power prices.
- Full transparency
- Reputable partner in case of future regulatory risk
- Control of who will use the green “credits” for this farm
- High-credit ratings of corporate end-users
- Higher bankability; lower financing costs
The advantages for corporations, datacenter or industry are:
- Avoided retail margins on power. Direct long-term purchase.
- Avoided retail margins on green certificates. Direct long-term purchase.
- 10+ year claim on “additionality”: that you helped to create more sustainability
- Full transparency on the origin of the renewable energy
- Public-Relation value
- Margin on power price guarantee options
- Securing renewable energy targets for a long period
- Securing your renewable energy targets at a lower cost