Power Purchase Agreements

Power Purchase Agreements

PPA enables cost-effective decarbonisation

Power Purchase Agreements (PPAs) offer many benefits to companies transitioning to renewable energy while mitigating the risks associated with traditional energy sources.

As a leading renewable energy provider and independent power producer (IPP), we offer a range of PPA options across multiple industries. We want to help companies make sustainable decisions that advance their decarbonisation goals while delivering long-term financial benefits.

What is a PPA?

A power purchase agreement (PPA) is a contractual agreement between energy buyer and seller. Parties agree to buy and sell energy which is or will be generated by a renewable asset. The PPA regulates the conditions and duration of the sale. PPAs vary structurally in terms of the volume to be delivered and pricing elements.

Our PPA references

Google

Sustainability has been one of Google’s core values from our earliest days, and a cornerstone of our related efforts is our commitment to clean energy.

Mondelēz International

Mondelēz is investing in renewable electricity in Europe to achieve net zero greenhouse gas emissions by 2050.

Neste & Borealis

The long-term agreements of Neste and Borealis ensure a significant addition of renewable energy to the Finnish grid.

Benefits of a power purchase agreement

Types of PPA contracts we offer

Physical PPAs A physical PPA contract is a contractual agreement where the renewable asset and the offtakers electricity demand are in the same grid network. Also meaning, that the physical aspects, such as balancing and transfer of electricity need to be included in the contract.
Virtual/Financial (vPPAs) Virtual Power Purchase Agreements (VPPAs) are financial contracts that let companies acquire the environmental benefits of renewable energy without having electricity demand in the same grid area as the renewable asset. This helps companies meet sustainability goals without managing energy infrastructure. With the help of the VPPA’s companies can support renewable projects and gain recognition for green efforts with less operational involvement.
Hybrid solutions Hybrid solutions within Power Purchase Agreements (PPAs) combine multiple renewable energy sources, such as solar and wind power, to reduce production variability. By integrating both solar and wind energy, customers benefit from a more stable power supply, reducing the intermittency of each source individually. Additionally, future integration of Battery Energy Storage Systems (BESS) promises even smoother distribution, further minimizing disruptions in power supply.

More information

Would you like to know more about how renewable energy solutions can help your company achieve its sustainability goals? Contact Aki Ojanen!

Aki Ojanen

PPA Originator

Ilmatar Energy Oy

+358 50 566 0914 aki.ojanen@ilmatar.com