A PPA (Power Purchase Agreement) is a contract that regulates the sale of electricity between a producer and a consumer over a specific period of time, for example three, five or ten years. If the contract is concluded directly with an end consumer company, it is referred to as a Corporate PPA. PPAs can be concluded either ‘on-site’ (the energy is generated directly at the point of consumption) or ‘off-site’ (the energy is fed into the grid). There is also the option of concluding a Virtual PPA. In this case, no physical electricity flows and only a financial contract, also known as a contract for difference (CFD), is concluded. If an energy supplier, electricity trader or direct marketer acts as the buyer, this is referred to as a Utility PPA.
When does a PPA contract make sense?
PPAs are an important way of marketing electricity from renewable energies, especially for projects that are not eligible for statutory EEG subsidies. MaxSolar is particularly interested in PPA contracts for ground-mounted solar systems that are not eligible for EEG subsidies, whose EEG subsidies are expiring, or whose PV systems can achieve a better electricity price through a PPA. With the help of PPAs, companies can secure long-term supplies of green electricity at fixed prices or hedge against market risks.
- 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.
- 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.
- System output:
Typically, the output per plant is between 5 and 15 MWp, sometimes between 30 and 50 MWp or more.
- 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.
Discover a selection of our completed photovoltaic projects with existing power purchase agreements (PPAs):
- Here you will find all references.
PPAs offer numerous advantages: greener, cost-efficient electricity with long-term price security, planning reliability thanks to stable, calculable electricity costs, improved competitiveness and a sustainable corporate strategy.
In addition, the various PPA models offer specific advantages:
We would be happy to advise you on the subject of Power Purchase Agreements
Contact us by phone or message with your enquiry about PPAs in the field of renewable energies.
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 21396-60