Corporate PPA

New contractual structures to support investments in renewable productive assets.

Home / Corporate PPA Corporate PPA A PPA, or Power Purchase Agreement, is a long-term contract for the purchase of renewable energy and is an agreement between two parties, the seller who generates renewable energy and the buyer who intends to purchase it. These medium- or long-term agreements involve the supply of renewable electricity (most common for wind and photovoltaics) to a specific party, usually an electricity trader (utility PPA) or a large company (corporate PPA).

PPAs are new contractual structures to support investments in renewable production assets and at the same time are a valuable tool to support strategies aimed at accelerating the sustainability path of companies.

They are a concrete and innovative solution to help achieve the ambitious goals of the green transition and a tool for managing price volatility risk.

For companies, these long-term contracts represent a guarantee for the supply of energy from renewable sources only, as well as an opportunity to make a contribution to the development of wind and photovoltaic plants, freeing themselves from public incentives.

By signing a contract to obtain energy from a specific renewable plant under development, the company contributes to the financing for its construction. In this way it lowers its environmental impact, accesses only certified renewable energy and reduces its exposure to energy price volatility by locking it in for a long period. Finally, from a portfolio diversification point of view, the company can boast a new risk management tool.