Breaking down the basics on the types of PPAs provided by French energy giant ENGIE
ENGIE is one of the leading providers of PPAs worldwide: in 2018 alone, it has signed Italy’s first private PPA for “grid-parity” solar, the first PPA to be signed for wind farms under development in Spain and new long-term power purchase agreements (PPA) in Chile.
Recent PPA announcements have included a four-year power purchase agreement (PPA) for the output of the 385-MW Arkona offshore wind farm in the German Baltic Sea. This deal was announced the same week that Engie launched the largest energy storage system in the US state of Massachusetts with a 3 MW grid synergy system connected to a solar farm near Boston: this US $4 million project will supply power from the solar plant to the local utility under a 20-year PPA.
ENGIE designs PPA contracts to suit every type of generation plant, business model, operational practice and objective. So let’s take a look at the types of PPA Engie provide, as outlined in this blog post.
Long-term PPAs with long-term guarantees
- If you’re a generator setting up a new plant, ENGIE provides the essential payment guarantees and security required by investors and finance providers.
- Long-term PPAs will provide income assurances for up to 20 years, or as long as required by investors.
- Long-term PPAs will guarantee payments for all output from the plant.
- Long-term PPAs can also be drawn up for existing plants that require ongoing payment assurances.
Short-term PPAs with versatile contracts to optimise earnings
- If you’re a business with generation assets on your sites (solar, wind, etc.), ENGIE offers a range of short-term PPAs to enable the optimisation of income.
- If you export regular, predictable volumes to the grid, ENGIE provides fixed price contracts to give you a regular income each month, or choose flexible contracts to access market-reflective prices.
- If you only occasionally export a surplus to the grid, ENGIE provides market price-related ‘spill’ contracts that simply pay you whenever you export any excess electricity.
Contracts that are compatible with subsidy schemes
- ENGIE provides PPA contracts that are compatible with the Contracts for Difference (CfD) scheme, Feed in tariff (FiT) and other government subsidy schemes for renewable generators.
- For CfD participants, ENGIE will ensure that the agreed Reference Price with the LCCC, whether IMRP or BMRP, is matched in the PPA.
Earning revenue from renewable energy certificates
- If you generate renewable electricity that qualifies for ROCs (Renewable Obligation Certificates), you can earn additional income by selling these to ENGIE.
- As an energy supplier, ENGIE provides a route to market for these certificates, taking care of all contractual arrangements on the behalf of clients.
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