Enel: securing success for new solar- and wind-powered projects using a range of PPAs
Italian energy major Enel have long been champions of corporate renewable PPAs, using them to build partnerships, sharing global expertise, offering project development capabilities and supply their clients with reliable, tailor-made and cost competitive renewable solutions.
Recent major deals include two 20-year PPAs: a 475 MW solar PV PPA signed in Brazil and the financial close of a 180 MW wind Moroccan wind project. Enel’s use of PPAs illustrate just how diverse PPAs are today – not only geographically, but also in terms of the range of clients buying PPAs. PPAs all started in the ICT sector, but today Enel’s clients include automotive, food & beverage, cement, mining, chemical, retail, tech, telecommunication, bank and others.
But corporate buyers need to know that PPAs are diverse, in and of themselves: there is no one-size-fits-all PPA!
So let’s check out the 3 types of PPA Enel offers:
On-site PPA
- With an on-site PPA, Enel’s renewable power plant is developed, built and operated directly on the client’s property.
- The energy generated is fed directly into the client’s electrical system.
- The PPA supply price is based on the specific plant characteristics, guaranteeing with a long term hedge. A typical PPA agreement can last between 10 and 30 years, depending on your requirements, and may include a variety of purchase and renewal options.
Sleeved PPA (aka: off-site physical PPA)
- With a sleeved (i.e. off-site) PPA, Enel’s renewable power plant is built in a remote location taking the client’s facilities into account, and feeding the power into the grid.
- The energy is delivered via the grid to deliver it, with the support of our retail division, a retailer agreed upon, or the grid operator.
- The energy volumes delivered are paid as agreed upon in the PPA.
Financial PPA (aka: Virtual/Synthetic/Contract for Difference PPA)
- The most flexible PPA agreement of all, Financial PPAs mean Enel their plant in a remote location and feed the power into the grid, delivering the energy to a specified location (typically a market hub).
- The client retains all the related renewable energy attributes (Renewable Energy Certificates or Guarantees of Origin for example) associated with the energy fed into the grid.
- As a renewable solution, Financial PPAs have a much lower associated risk than on-site or off-site generation, and are easier to source and implement.
