A Corporate Power Purchase Agreement (PPA) is a contractual agreement between a renewable generator and an energy user, to purchase renewable power. For large entities, with a desire to meet Corporate Social Responsibility targets and goals, contracting directly with new renewable projects, allows them to demonstrate that their power procurement is making a tangible difference to the environment. In October 2017, ElectroRoute was delighted to announce its partnership with Microsoft who has entered into a 15-year PPA with a 37MW windfarm in Co. Kerry. ElectroRoute worked closely with Microsoft to establish the structures necessary to enable the Corporate PPA structure and now manages all related energy trading activities.
Corporate PPA structures tend to take a number of different approaches. The structure needs to take into account local jurisdictional energy market regulations and rules and can include a “self-supply” structure, whereby the large energy users establishes its own supply vehicle, or a “sleeve” structure whereby the power is sleeved through ElectroRoute’s licenced supply company. ElectroRoute offers a range of bespoke services to facilitate and manage Corporate PPA structures. This includes:
- Enabling the PPA – providing advice and guidance to assist the parties develop the optimal contractual and market structures to enable the Corporate PPA
- Licences and Registration – procuring the necessary licences and market registrations required to implement the structure
- Forecasting and Trading – ElectroRoute’s 24*7 trading desk manage the position of the generator and the large energy user in the energy market
- Balancing Services – ElectroRoute can take balancing risk on behalf of the counterparties
- Green Management – Management of Guarantees of Origin (GoO), Green Certificates and any green reporting