Unraveling The Ideal PPA: Your Guide To
Selecting The Perfect Match
Posted on 28 July 2023
In the quest for a greener future, Power Purchase Agreements (PPAs) have become a vital tool for businesses to embrace renewable energy. But which PPA type is the most suitable for your organisation?
Let’s explore the benefits of Physical and Virtual PPAs and the factors’ crucial role in your decision-making process.
Physical PPA:
In a Physical PPA, there is a physical delivery of energy to another point on the electric grid. This arrangement offers tangible advantages in certain regions. It requires both the generator and the customer to be within the same wholesale electricity market. The proximity of the point of consumption reduces transportation costs, making it an easy-to-contract solution for local green energy procurement.
Virtual PPA:
Virtual PPAs offer flexibility, de-linking the location of energy production from the point of consumption. Buyers and sellers need not be confined to the same grid network, opening doors for intra-country PPAs across different zones and even cross-border PPAs.
Ease Of Deployment: Virtual PPAs Take The Lead
The ease of deploying Virtual PPAs shines brightly, as they liberate both buyers and sellers from grid network constraints. Unlike Physical PPAs, Virtual PPAs allow for a broader range of location choices, increasing project optionality. Corporations can invest in green energy projects without being bound to a specific location, creating endless possibilities for a more sustainable future.
Green Credentials: Physical And Virtual PPAs Hold Equal Value
In both Physical and Virtual PPA, the energy buyer also receives the guarantee of origin certificates for each MWh of energy produced. The buyer owns those certificates, which it retires to reduce its scope 2 emissions. They enable the buyer to invest in the power of creating new, clean energy sources, making a powerful statement in sustainability reports and within the ESG community.
Choose The PPA That Fits Your Vision!
Secure Your Businesses A Green Energy Supply
Accessing a certified marketplace
100% traceable energy
We are happy to announce our progressive movements in the PPA Marketplace!
As you embark on your journey towards renewable energy, consider the advantages that Physical and Virtual PPAs offer. Clutch the perfect PPA for your organisation, and let’s propel the world towards a more sustainable and brighter future, hand in hand!
An Electrical Engineer and a Data Scientist. Ruwini is the Business Analyst at RE24.