Negotiation and structuring of PPA contracts
Negotiation and Structuring of PPA Contracts in Barcelona and Madrid
At TREBOL ENERGIA GROUPwe specialize in the negotiation and structuring of Power Purchase Agreement (PPA) contracts in Barcelona and Madrid. As experts in energy consulting, we have extensive experience in this type of agreements, which help to make profitable the energy strategy of companies and set their long-term budgets.
What is a PPA?
A PPA, or Power Purchase Agreement, is a contract between a renewable energy developer and a marketer or energy consumer.is a contract between a renewable energy developer and a marketer or energy consumer. The latter are usually entities that require large amounts of energy.
PPA contracts have gained prominence in recent years, driven by energy efficiency initiatives and the instability of energy markets, which have seen prices rise to record highs.
How does a PPA contract work?
PPAs are long-term contracts, generally between 5 and 10 years. In these contracts, the energy producers assume the costs of operating and installing the solar or wind power plants, while the consumers or marketers commit to purchase the energy necessary for their operation for the duration of the contract.
Both parties obtain fair benefits: producers receive financing to strengthen their projects, and customers experience a decrease in operational costs, since the energy contracted can be up to 40% cheaper than that purchased in the traditional way.
Financial PPA: Enhancing Sustainability and Profitability
The Financial PPA is an innovative agreement that integrates environmental sustainability with financial benefit. This type of contract, which is a fundamental part of the strategy of TREBOL ENERGIA GROUP, allows organizations to commit to long-term renewable energy sources while ensuring the stability of their costs.es stability and improve their sustainability profile.
Advantages of a PPA contract for your organization
The advantages of PPA Power Purchase Agreements are numerous. are numerous. By adopting PPAs, your organization will be at the forefront of innovations in sustainability, improving its positioning, credibility and competitiveness with customers and the general public.
Benefits for developers of a PPA contract
- Fixed income to support investment strategies.
- Consolidation of long-term agreements and relationships.
- Better financial conditions to develop more projects.
Benefits for consumers and marketers in a PPA contract
- Decrease in energy purchase costs.
- Possibility of tax reductions and other government incentives.
- Minimization of CO2 emissions associated with the operation.
- Possibility of certifications for environmental protection, sustainability and more.
Types of PPA contracts
There are two main types of PPA contracts:
- Onsite PPA Contract: Provides power from a custom-designed and installed photovoltaic installation at the customer's premises.
- Offsite PPA Contract: Supply of energy from a facility connected to the territory's electricity supply system.
Long-Term Contract for Renewable Energy: Guaranteed Sustainability and Stability
The Long Term Contract for Renewable Energy represents a strategic alliance between producers and consumers committed to a more sustainable future. At GRUPO TREBOL ENERGIA, we specialize in the management of these contracts, which cover periods of 5 to 10 years, offering both environmental and financial benefits.
In this type of contract, the renewable energy producers are responsible for the costs of thees of installation and operation of the solar or wind power plants. In return, consumers are guaranteed to purchase the energy generated at preferential rates. This not only boosts the adoption of clean energy sources, but also offers consumer companies cost stability.es stability in the long term.
Manage your PPA power purchase and sale agreements with us
At TREBOL ENERGIA GROUPyou will find a qualified team ready to become the energy ally that your organization needs. We have a broad portfolio of services focused on providing useful information on energy issues, advising you on energy contracting and designing the plan that best suits the needs of your company. We are your Trusted Energy Consultant.
Frequently Asked Questions about PPA Contracts:
A power purchase agreement (PPA) is an agreement between a power generator, such as a wind or solar farm, and a power buyer, such as a company or government entity. In this contract, the buyer agrees to purchase a specified amount of power for a specified period of time at a pre-agreed price.
The PPA provides stability and predictability to both parties, allowing the generator to secure long-term revenues and the buyer to obtain energy at competitive prices and often from renewable sources, thus promoting sustainability and emissions reduction.
