Power Purchase Agreement
A direct contractual agreement between energy producer and consumer with a third party involvement. The Power Purchase Agreement (PPA) defines the conditions of the agreement, such as the amount of electricity to be supplied, negotiated prices and a duration.
By committing to a pre-negotiated price for a longer duration the energy consumer allows the project developers to get better financial terms for the development of new assets.
This synergy can be beneficial to both parties. More and more corporations are turning to PPAs to source renewable energy in an economically competitive way. Entering a PPA shows a substantial commitment to the environment by being directly instrumental in the construction of new renewable assets.
Having power and GOs from the same source gives high transparency and traceability. In addition, it is a hedge against market price fluctuations, including from new carbon taxes, and a cost-competitive way to source energy tailored to your needs.
How we can help
GO2 Markets has a wide network of project developers, utilities and corporate off-takers which can assist you in finding the right counterpart and the most suitable project for such a deep partnership. We can assist you in understanding the complex world of PPAs, structuring your needs, finding and negotiating with potential partners to maximize your chances of signing a successful PPA.
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