Within the Welsh Government Energy Service, several public sector and community projects have either achieved or are exploring the possibilities of implementing a private wire Power Purchase Agreement (PPA) to connect their renewable generation project to a single energy customer.

The key benefit of a private wire PPA is that, for both the generator and the end user, there is the opportunity to share savings through avoiding the grid charges and policy costs of grid-imported electricity. In addition to this, the end user buys electricity below the retail cost of grid electricity, and the generator sells above the wholesale market price. Private wire PPAs also help with price certainty for both parties.

Private wire PPAs can also strengthen end users’ corporate, social, financial, and environmental responsibility credentials by buying electricity from a named local renewable source. What is more, when the customer owns the renewable energy generator it is connected to, the carbon benefits of this arrangements are allowable under the Welsh Government guidance on carbon accounting.

This best practice note takes you through the key considerations of implementing a private wire PPA and the steps that need to be taken before and during the installation process. It also discusses potential future regulations, which you may need to consider when calculating the economic feasibility of your private wire project in the long term.

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