What are Power Purchase Agreements in Australia?
A Power Purchase Agreement, also known as a PPA, is a long-term agreement between a buyer (or off-taker) and a seller to trade electricity. A seller can sometimes be referred to as a principal who is the asset owner and operator, and agreements usually last 10 – 20 years. PPAs are a form of Energy as a Service (EaaS) which can help clients access renewable energy and other energy services from onsite or offsite assets without any upfront capital expenditure (CapEx).
Solar PPAs are often the most affordable, accessible, and effective way for organisations to procure renewable energy and reduce emissions. PPAs are especially useful for those trying to reach net-zero emissions targets, without wanting to invest their own capital into non-core assets.
Behind-the-Meter (or onsite) PPAs are a well-established type of PPA and feature distributed energy assets (e.g. solar and batteries) installed behind the off-taker’s electricity meter at their site. This is advantageous as the off-taker does not have to pay electricity network charges for the electricity which is produced and consumed on site.
Entering into a PPA is one of the smartest solutions for any organisation or business looking to reach net-zero emissions targets, increase operations resiliency or achieve energy savings, without any upfront cost. Off-takers transfer development, operational and performance risks to the PPA Principal, and are guaranteed no ongoing maintenance costs for the energy systems.
PPAs also deliver long-term price certainty for a portion of site load (hedge), as well as future flexibility for energy storage and other distributed assets to be incorporated at no capital cost.
How does a PPA with Verdia work?
Verdia can help you achieve your critical business goals through our PPA/EaaS agreements. A PPA with Verdia allows us to develop, deliver, own, operate and maintain a range of distributed energy assets for your business without any upfront capital investment.
What assets are accessible to clients through a PPA?
Verdia offers a range of distributed energy assets and services, which can help our clients deliver energy savings, increase operations resilience, and reach net-zero emissions goals.
Verdia helps corporate, industrial, government, and infrastructure clients achieve their energy goals with or without upfront CapEx. Contact us if you would like to know more about our CapEx solutions as well.