What’s a Private or Corporate PPA?
A Corporate PPA (Power Purchase Agreement) is a long-term contract under which a business agrees to purchase electricity directly from an energy generator. This differs from the traditional approach of simply buying electricity from licensed electricity suppliers, often known as utility PPAs.
PPAs are widely accepted in the U.S., Europe and Scandinavian markets. Recently, there has been a growing trend in Latin America, with the support of corporate partners, committing to long-term PPAs.
Both the economic and environmental benefits PPA’s bring to stakeholders have led an increasing number of reputable businesses to enter into these agreements and invest in generations assets of their own.
While private PPAs were originally pioneered by data centers that needed large amounts of energy and resources to operate, PPAs are no longer limited to a certain type of business or geographical area. In fact, it is now common for companies across industries to be conscious of their energy sources, costs, and carbon footprint. Large banks, retailers, restaurant chains, and telecommunications companies have all widely published details of their PPAs.