This guide is for local authorities, schools, and other public sector organisations who might be considering if a Power Purchase Agreement (PPA) is right for them.
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What is a Power Purchase Agreement?
A Power Purchase Agreement (PPA) is an increasingly popular option for the procurement of green energy. It is a contractual agreement that sets out the terms for the sale/purchase of energy from one party to another and is typically agreed between a generator and either a licensed supplier or offtaker.
The need to rapidly deliver on Net Zero targets, coupled with volatility in wholesale electricity markets, is driving public sector organisations to act to reduce emissions from their estate and drive down energy costs. For those wanting to invest in green infrastructure, there is a need to lock in finance over the next 5-20 years. A PPA enables organisations to act now to deliver on these mutually beneficial objectives.
Who is the PPA Guide for?
This guide is for local authorities, schools, and other public sector organisations who might be considering if a PPA is right for them.
It is designed to help you think about PPAs and how they might support your organisation to deliver its goals. It sets out the key things you will need to think about, the critical people to engage, and the common issues organisations face when adopting a PPA. It also signposts to further resources which may support your thinking further.
Compared with purchasing electricity from a licensed supplier or public sector buying organisation, a PPA can offer your organisation and/or local area significant additional benefits beyond a reliable source of electricity. There are however risks, and delivering a PPA can be complex.
Some of the content in the PPA Guide
- What do I need to understand when considering a PPA?
- The different types of PPA and what is included in one.
- Why might organisations be interested in a PPA?
- What are the benefits and risks of a PPA?
- Who am I likely to need to engage to set up a PPA?
- What is the basic process for setting up a PPA?
- Common issues faced/that need to be addressed.
- Case studies.
- Examples of PPA documents.
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