Power Purchase Agreement Nedir


With a synthetic AAE, there is no physical supply of electricity to the buyer`s charging centers. In fact, the buyer will continue to pay his electricity bills, as they always do. A virtual AAE is a purely financial agreement that serves as a hedge for electricity prices. In addition, the buyer receives Renewable Energy Credits (RECS) under the VPPA, which allows the buyer to claim rights to their greenhouse gas reductions and the purchase of renewable energy. Those with a financial background will recognize this structure as a differential contract (CFD) or a fixed financial swap using floats. Electricity producers enter into AAEs either bilaterally with a consumer company (“Corporate PPA”) or with an electricity distributor who purchases the electricity generated (“Merchant PPA”). The electricity distributor can continue to supply electricity to an electricity consumer (transform it again into a “corporate PPA”) or to negotiate electricity on an electricity exchange. Many international groups are already buying shares in their electricity consumption via AAAs or have announced their intention to do so more frequently (see there100.org/re100). They use AAEs to obtain stable and predictable electricity prices.

AAEs are an effective way to reduce the risk of electricity prices, particularly for operators of high-investment and low-cost facilities (such as photovoltaic and wind power plants). Since electricity payments are already insured to some extent, facility managers and financial banks may be more confident that revenues from the sale of electricity will effectively cover investment costs. This makes the project more cost-effective in the long run. VPAPs are flexible and can help companies aggregate their load into a single renewable energy project under a single AAE, regardless of where their individual facilities are located. The VPPA is a separate financial contract that does not directly affect an organization`s traditional electricity supply. The organization continues to purchase electricity from the distribution company, in addition to the VPPA for renewable energy. In 2014, Green Power Partners American University and George Washington University co-signed a 20-year PPP with the Capital Partners Solar Project provided by Duke Energy Renewables.1 This agreement created a 52-megawatt solar installation in North Carolina, then the largest photovoltaic project east of the Mississippi River. The project aims to provide the two universities with about half of their electricity needs. Learn more about the Capital Partners Solar Project (PDF) (6 p., 349K) Exit. Unlike the traditional UNbundled purchase of the REC, which always costs money, the VPPA swap offers UC at a price determined by the net difference between the fixed price of the VPPA and the wholesale price.

A positive difference between the market price and the fixed price of the VPPA can result in significant positive cash flows. In many previous VPPAs, the fixed price of the VPPA was below or above the market price, and the buyer had to review the price forecasts to determine whether the project would ultimately provide a positive NPV.


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