Virtual PPA (V-PPA)

The buyer agrees to purchase power indirectly from a renewable project and settles that contract outside their agreements with electricity retailers.

Overview

Billing is completed by a contract for differences so the production and consumption do not have to match in real time.

The buyer will have to manage exposure to the grid-sourced electricity as well as the grid-sold electricity from the renewable project.

Production from efficient, scaled off-site developments reduce the cost / kWh and can match all facility consumption.

Without assets on the roof, it requires more marketing prowess to draw awareness to the effort.

Fixed Price Contract (CFD) - Wholesale Electricity Price = Contract Settlement Cost

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