Green energy is the future
Power Purchase Agreements
(PPA)
Power Purchase Agreements (PPAs) are long-term contracts between large industrial energy consumers and new RES projects investors. These contracts are usually signed for a period of 5 to 20 years. These agreements are usually signed for a period of 5 to 20 years. Through them, the energy consumer commits to buying clean energy and will recieve Guarantees of Origin without having to invest in their own equipment, such as wind/water turbines or solar panels.
Thepopular solution in Bulgaria currently is for companies to procure electricity through short-term supply contracts, usually from 6 months to 2 years. This exposes them entirely to the high price risk of the energy exchange. But there are already other opportunities on the market. Newly developed RES projects can ensure predictability of energy costs over a longer period of time, on top of clean energy supply.
Power Purchase Agreements provide a competitive advantage for companies hedging the energy prices. Such agreements ensure better planing of energy expenses and protect busnesses from the price shocks of energy exchanges. In addition, they make it possible for companies to demonstrate a strong commitment to environmental protection and sustainable development to customers and investors, to meet regulatory requirements, to improve the ESG (Environmental, Social and Governance) rating of the company or to generate additional financial and marketing advantages.
The practice of large consumers providing the energy they need from new RES projects by signing a long-term contract to buy the energy produced has long been widespread in the US and is becoming more popular in Europe, growing by 65% per year between 2013 and 2019, gaining even more momentum over the last 2 years There is a wide range of options for companies looking for a source of renewable electricity and ready to conclude a long-term contract for the purchase and sale of electricity.
Basic PPA models
TOKI offers four basic models for structuring a long-term contract for the purchase and sale of electricity, which can be adapted to the needs of businesses with over 500 MWh monthly consumption. Register here to learn more and choose the right one for your company:
Advantages with PPA
Fixed price
Guaranteed predictability of electricity expences for a long period of time - from 5 to 20 years
Sustainable development
Create sustainable consumption and production patterns while also getting additional green advantages – e.g. Guarantees of Origin
Corporate responsibility
Demonstrate the company's commitment to protecting the environment and achieving carbon neutrality goals
From strategy to implementation
For corporate electricity consumers PPAs are one of the best ways to achieve carbon neutrality and cost savings by hedging the price.
PPAs can be concluded for shorter or longer periods (from 5 to 20 years and over), for various volumes and profiles of green energy production and with different methods of price fixing. These essential elements are an integral part of the terms of the agreement and may be complex to determine. Whether your energy needs will be adequately guaranteed and whether you will achieve the desired financial and sustainable advantages depends on the conclusion of the right energy deal for your company.
If you wantyour organisation to move to a green energy supply, TOKI can offer assistance in structuring and implementing the PPA that is right for you. With a well-established role as an electricity trader and a balancing group operator, and close cooperation with other companies, part of the group of Renalfa AD, we are uniquely positioned to offer and consult on different options for structuring PPAs.
A1 Bulgaria has its own optical network of over 21,000 km and modern infrastructure, which covers 73 cities and 133 small towns.
The leading provider of telecommunications services “A1 Bulgaria” and the Bulgarian investment group in the field of clean energy “Renalfa” signed a Private long-term contract