{"id":51214,"date":"2021-09-09T08:00:40","date_gmt":"2021-09-09T06:00:40","guid":{"rendered":"https:\/\/www.vpsolar.com\/?p=51214"},"modified":"2021-09-09T08:08:50","modified_gmt":"2021-09-09T06:08:50","slug":"ppa-power-purchase-agreement","status":"publish","type":"post","link":"https:\/\/www.vpsolar.com\/en\/ppa-power-purchase-agreement\/","title":{"rendered":"PPA – Power Purchase Agreement"},"content":{"rendered":"

PPAs are contracts for the purchase of \u201clong-term\u201d energy<\/strong> that ensure the lenders or banks of a generation plant, to know since the beginning the profitability of their plant for the following years.<\/p>\n

It is a very widespread tool in the United States, where companies that have entered into purchase contracts to ensure green energy are important companies like Apple and Facebook.<\/p>\n

In reality, government incentives for photovoltaics can be compared to PPAs in which there is a public figure that guarantees the remuneration of the plant.<\/p>\n

A tool for renewables<\/h2>\n

PPAs are considered interesting for the renewable energy<\/strong> sector (photovoltaic and wind) because for these plants the initial investment is higher than the operating costs (in a coal plant it is also the cost of the fuel in the years that influences the cost of energy).<\/p>\n

Therefore, the investor has the need to see himself guaranteed the return of the investment in a multi-year contract<\/strong>.<\/p>\n

Virtual PPA<\/h2>\n

In this type of contract (VPPA) the buyer does not purchase energy of a specific production site<\/strong>. It instead purchases a defined quantity at a fixed price and above all the renewable origin certification.<\/p>\n

VPPAs are very flexible contractual structures and allow buyers to meet a large part of their sustainability goals with a relatively small number of contracts.<\/p>\n

Furthermore, since VPPAs are purely financial transactions, they enable buyers to reach the renewable energy quota quickly and efficiently.<\/p>\n","protected":false},"excerpt":{"rendered":"

PPAs are contracts for the purchase of \u201clong-term\u201d energy that ensure the lenders or banks of a generation plant, to know since the beginning the profitability of their plant for<\/p>\n","protected":false},"author":1,"featured_media":50163,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[141],"tags":[5442,5440,5303,5441],"class_list":["post-51214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-en","tag-power-purchase-agreement-en","tag-ppa","tag-renewable-energy-en","tag-virtual-ppa"],"yoast_head":"\nPPA - Power Purchase Agreement<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vpsolar.com\/en\/ppa-power-purchase-agreement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PPA - 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