Power Purchase Agreement

A Power Purchase Agreement (PPA) is a contract between two parties, one which generates electricity (the seller) and one which is looking to purchase electricity (the buyer), generally a power utility company, trades power that is produced for the market by an Independent Power Producer (IPP). A PPA is the principal agreement that defines revenue between an electricity seller and an electricity buyer. A PPA or IPP agreement is usually a long-term contract for a concession project for an IPP or a Build-Own-Transfer (BOT). A PPA can therefore be viewed as an instrument to facilitate the sale and purchase of electrical power into the local market.

ADVANTAGES OF A POWER PURCHASE AGREEMENT

Guarantees for quantities and price: projected revenues of a project can be uncertain and so some guarantees as to the quantities purchased and price paid are required to give the project a viable protection from cheaper or subsidised domestic or international competition. For example, when a neighbouring power plant is producing cheaper power.

Certainty of revenue: for example, a government will want to understand how much it will be paying for the power and they will also want the first call on the power when necessary. A utility company wishes to secure the power supply.

Reduce CAPEX: organisations with a commercial, industrial, institutional or governmental background can find ways to monetise operations that traditionally have been cost centres.

Producing and providing from one source: the IPP is the owner of the power project and not only generates but also provides power to the buyer.

WHY CHOOSE GF GENOVATE AS YOUR PPA SUPPLIER?

GF Genovate can design, build, operate and maintain these power generation facilities, allowing our customers to benefit from stable and reduced utility costs and to gain a new source of revenue without adding to below-the-line expenses. GF Genovate has the capacity and knowledge to work with power utilities and PPA’s. We have vast experience in supplying IPP (Independent Power Production) solutions across the United Kingdom. Rather than simply renting out a single genset or a power plant, GF Genovate can create its own power plant and provide electricity to the network. Electricity production depends on the demand from the Buyer or network administrator. There is no fixed price and the costs are paid per MW or MWh.







OUR EQUIPMENT

With our extensive power generation equipment, we can deliver all kinds of energy and power solutions. The diesel and SIEMENS gas fuelled IPP power plants in our fleet – ranging from 100-2000 kVA containerised units up to multi-megawatt power plants – are specially designed for PPA/IPP power projects. They are safe, reliable and efficient and meet the highest environmental standards. You need a reliable power source when facing challenges in power supply. With the use of our power generation rental equipment, GF Genovate can create and support for all kinds of power networks.

MORE INFORMATION

Want to know more about GF Genovates IPP and PPA solutions? Simply call us at 0113 253 0589, send an email to desk@greenfroggenovate.co.uk or contact your nearest GF Genovate office directly.
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