What’s a Private or Corporate PPA?
A Corporate PPA (Power Purchase Agreement) is a long-term contract under which a business agrees to purchase electricity directly from an energy generator. This differs from the traditional approach of simply buying electricity from licensed electricity suppliers, often known as utility PPAs.
PPAs are widely accepted in the U.S., Europe and Scandinavian markets. Recently, there has been a growing trend in Latin America, with the support of corporate partners, committing to long-term PPAs.
The increasing frequency with which large, well-known businesses have entered into PPAs and invested in generations assets of their own is mostly due to both the economic and environmental benefits they bring to stakeholders.
Private PPAs were pioneered by the data centers that needed huge amounts of energy and resources to operate. However, the interest of entering into PPAs is not limited to just a certain type of business or geographical area. Now, it is common for companies, across industries, to be conscious of their energy sources, costs, and carbon footprint. Large banks, retailers, restaurant chains, and telecommunications companies have all widely published details of their PPAs.