Power Purchase Agreements: A Guide
You may have heard the term PPA mentioned more and more as of late. And if you’re the kind of business that’s dedicated to renewable energy and environmentally-friendly practices, chances are you’re currently looking at how to make use of a PPA.
In this simple and easy-to-understand guide, you’ll discover the essentials of PPA and how they’re of benefit to you, your business, and the planet as a whole.
What exactly is a PPA?
A Power Purchase Agreement (also known as a PPA) is essentially a long-term renewable energy agreement between a seller and buyer. PPA contracts tend to be long (some can be for up to 20 years) and are extremely popular with small to medium enterprises, and global businesses alike.
A PPA can help to give businesses more peace of mind in volatile and increasingly unstable power markets. By agreeing on a locked-in price, businesses can achieve more sustainable renewable energy to power their business into the next few decades.
Many innovative companies are offering renewable energy courses to help businesses gain a more comprehensive understanding of Power Purchase Agreements.
What are the main benefits of having a Power Purchase Agreement?
As the world continues to change, evolve, and embrace sustainable energy practices, businesses are beginning to follow suit. PPAs provide many benefits and peace of mind for future-focused businesses. The main benefits are as follows:
The idea of locking in a long-term price agreement is especially beneficial to businesses that are trying to navigate their way through the tumultuous economic landscapes of the power market.
Without the concerns of constant fluctuations to contend with, businesses are able to plan ahead with more confidence and budget more accurately. The decreased spending on energy also provides companies with a larger budget to use elsewhere.
Renewable energy is far easier to track and source, which empowers businesses to get a deeper understanding of where their energy is coming from and how it is being used.
Achieve and maintain sustainability targets
Emissions that come from the purchase of energy and supply chain emissions are extremely important scopes of measuring energy. Companies that embrace the use of Power Purchase Agreements are better able to achieve and maintain carbon neutrality.
What can energy buyers do with a PPA?
Businesses that purchase energy are able to use PPAs to their advantage by buying their energy from the most renewable sources possible. These kinds of purchases also help businesses to meet their renewable energy criteria potentially set by governing bodies.
In fact, many huge global companies like Amazon and Google require large quantities of energy across the world and purchase energy from renewable sources to help reduce their overall carbon footprint.
Understanding more about Power Purchase Agreements
If you’re concerned about PPA agreements or just want to know all you can about this innovative approach to your energy needs, there are several available courses to demonstrate just how beneficial they can be for you, your business, and the future of the planet.