Direct marketing of electricity

Power Purchase Agreements (PPA)

A forward-looking form of marketing in the field of renewable energies.

What is a PPA contract?

A PPA (Power Purchase Agreement) is a contract that regulates the sale of electricity between a producer and a consumer over a certain period of time, for example three years. Such agreements are known as corporate PPAs. Corporate PPAs can be either 'on-site' (the energy is generated directly at the point of consumption) or 'off-site' (the energy is fed into the grid). If an energy supplier or direct marketer acts as an intermediary, this is referred to as a Utility PPA or Merchant PPA. In this case, the energy supplier either sells the electricity on the electricity exchange (EEX) or supplies it directly to the end consumer.

When does a PPA contract make sense?

Power Purchase Agreements (PPAs) are an important way of marketing electricity from renewable energies, particularly for projects that are not eligible for statutory EEG support. Interest in PPA contracts is particularly high for ground-mounted photovoltaic systems that are not eligible for subsidies. PPAs also offer an economically viable solution for the continued operation of plants that are no longer eligible for EEG support.

On-Site Power Purchase Agreements

On-site PPAs are long-term electricity supply contracts in which renewable energy is generated and utilised directly on site at the customer's premises.

The property owner concludes a roof space utilisation agreement with us, while we sign an electricity supply agreement with the end user of the electricity (e.g. tenant or property owner).

We take on the complete project management, including financing, planning, realisation and operation of the system, as well as the entire project and financing risk.

Off-Site Power Purchase Agreements

Off-site PPAs are long-term electricity supply contracts in which electricity is purchased from a renewable energy source that is not located directly on site.

The defined amount of electricity is fed into the grid and, depending on the contract, is either supplied physically (‘Physical PPA’) or invoiced financially (‘Virtual PPA’).

This means that generation and consumption do not have to be in close proximity; settlement takes place via balancing groups.

Hybrid Power Purchase Agreements

Hybrid PPAs are long-term electricity supply contracts that combine several technologies - typically photovoltaics, wind power and battery storage.

This hybrid structure increases the security of supply and reduces the profile risks of individual energy sources.

Through the targeted use of storage systems, solar power or electricity from wind turbines, for example, can be stored at times of low value and fed into the grid at a later, economically more favourable time. This enables a more flexible supply of electricity and better adaptation to consumption.

Advantages of Power Purchase Agreements (PPAs)

PPAs have numerous advantages:

Green, cost-efficient electricity with long-term price security
Planning security thanks to stable, calculable electricity costs
Improved competitiveness and sustainable corporate strategy

In addition, the various PPA models offer specific advantages:

On-Site Power Purchase Agreements (PPA)

Direct use of electricity on site without grid charges
Can be flexibly expanded to include charging infrastructure, carports or storage solutions
Improvement of the ESG rating through sustainable in-house electricity generation

Off-Site Power Purchase Agreements (PPA)

Independence of location - electricity from renewable sources without spatial restrictions
Needs-based procurement of larger quantities of electricity, independent of own areas
Transparency through guarantees of origin for the green electricity purchased
Improved ESG rating through targeted use of renewable energies

Hybrid Power Purchase Agreements (PPA)

Greater security of supply thanks to the combination of several energy sources
Reduced price volatility through optimised electricity supply
Better grid integration through load control and intermediate storage
Cost-efficient procurement of renewable energies with long-term price stability
Increased sustainability through optimised use of renewable resources
Supporting decarbonisation targets and maintaining the green characteristics of electricity

PPAs offer a future-proof solution for companies that want to optimise their energy costs and at the same time actively contribute to the energy transition.

Details and parameters of our PPA contracts

Technology:
The current focus is on ground-mounted photovoltaic (PV) systems; onshore wind projects are also possible in the future.
Locations:
With our PPA offers, we have so far concentrated exclusively on the German market.
Plant status:
We are currently mainly marketing new construction projects. In the medium term, existing MaxSolar plants could also be included.
System output:
Typically, the output per plant is between 5 and 15 MWp, sometimes between 30 and 50 MWp or more.
Contract terms:
For EEG-subsidized systems (both new and existing), the contract terms are 1 to 4 years. For plants without EEG support, PPA contracts can have a term of 7 to 15 years.
Delivery structure:
Options include "pay-as-produced" (payment for the electricity actually generated) or "pay-as-nominated" (payment for a pre-determined amount of electricity).
Price structure:
Prices can be set as a fixed price, a variable price with a lower limit and/or upper limit (floor) or a variable price indexed to the electricity exchange.
Electricity supply:
The physical electricity is fed into the balancing group of the customer or its supplier.

We would be happy to advise you on the subject of Power Purchase Agreements

We will forward your enquiry to the appropriate specialist in our team and will be happy to provide you with comprehensive advice.

Tel.: +49 861 213966-0