Greenfield PPA
Market renewable generated energy profitably without EEG subsidies
Renewable power marketing without EEG subsidies thanks to greenfield PPAs
You are planning or building a renewable energy plant, for example a ground-mounted solar plant? You are evaluating the profitability of your wind or solar farm and would like to get by without EEG subsidies? You want to sell your renewable electricity at market prices and are looking for an experienced partner as a marketer (offtaker)?
Greenfield Power Purchase Agreements (Greenfield PPAs) are already often an ideal solution for new plants on solar open spaces with a capacity of 20 MWp or more. Falling electricity production costs - especially for solar plants - rising electricity prices in the long term, low auction results, rising CO2 prices and an emerging demand from industrial companies ensure that plants can be profitable even without EEG subsidies.
In the future, depending on the price level on the wholesale market, this may also be the case for newly constructed wind farms that are awarded a contract in the tender process. With a shorter contract period compared to solar plants, you can achieve higher revenues than the value to be invested.
Our green power offer
At Vattenfall, we have extensive experience with renewable power in a wide variety of forms, such as renewable power from diverse countries, subsidised or unsubsidised, many types of generation, as well as from plants of many different years of construction. We would be happy to support you with our expertise:
- in electricity trading
- in guarantees of origin
- in direct marketing
- PPAs and corporate PPAs.
Let's talk together about the individual marketing requirements of your solar or wind farm from a total portfolio size of about 50 MW.
What do Greenfield PPAs offer you?
With a Greenfield Power Purchase Agreement, we guarantee to purchase your renewable power and remunerate it in accordance with the contractual agreement over the entire term of the contract. This allows you to avoid fluctuating or unpredictable electricity market prices and enjoy planning security for your electricity revenues. Already in the planning and projecting phase, a greenfield PPA can be an important basis for your investment decisions and negotiations with financiers and banks.
How do Greenfield PPAswork?
We take 100 percent of the electricity from your wind or solar farm "as produced" or "as forecast." Various pricing models are possible:
- Fixed price for each megawatt hour produced
- Fixed price for an agreed volume
- Combination of fixed price and variable share, e.g. based on spot price
Guarantees of origin are delivered to Vattenfall based on the volume of electricity generated. The contract term can be one to ten years, or longer depending on the option.
We take care of all downstream energy management processes after pure delivery - including marketing risks, balancing group management, market communication, billing, and REMIT notifications
Who benefits from greenfield PPAs?
For investors, a PPA makes the investment decision easier, because we take over all energy management activities after electricity delivery. For consumers, PPAs are a big plus, because industrial customers receive renewable power from a specific regional plant. This enables companies to meet their environmental targets and promote the expansion of renewable energies without burdening the EEG account. In addition, they have an excellent PR and marketing argument. Last but not least, the environment also benefits, because PPAs guarantee the profitability of a plant or park and thus promote the expansion of renewable energies.
Request for quotation Greenfield PPA
Contact us and receive your individually tailored offer.
Whitepaper: Green Corporate Power Purchase Agreements
PPAs offer many advantages: Project developers and generators can secure their generation from O20 plants, and customers are supplied with green electricity securely and over the long term. What other opportunities and risks do PPAs offer in contrast to direct marketing?
Learn more in our whitepaper!
Services and advantages at a glance
For customers:
- Delivery of guarantees of origin based on the amount of electricity generated
- Protection against fluctuating electricity market prices and thus planning security for electricity revenues
- Ensuring compliance with regulatory requirements for renewables
- Fulfilling the requirements of buyers who already meet or have met renewables targets by means of PPAs
For producers:
- Flexible pricing: fixed and/or variable
- Planning security for electricity revenues
- Direct access to industrial customers
- Purchase of 100% of your wind and solar power “as produced” / “as forecast”
- Assumption of all energy management tasks for marketing the electricity
Other:
- Contract term of 1 to 10 years, or longer if possible
- Focus on Germany, Netherlands, UK, Denmark, Sweden, Finland, Norway, France
- As a wholly owned Swedish state-owned company, Vattenfall is an experienced partner with a strong credit rating
What are Green PPAs
Sustainable solutions for renewable energy producers?
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<span class="h3">Did you already know?</span>
A Power Purchase Agreement (PPA) is a bilateral, long-term electricity supply contract concluded between a seller (plant operator) and a buyer (electricity consumer, e.g. utility or large industrial consumer). The PPA has advantages for both sides: The plant operator can generate electricity revenues at fixed prices - the commercial or industrial customer secures its electricity procurement for the long term.
PPAs are usually designed for the long term, for example over a period of ten years.
A Green PPA or Greenfield PPA is a Power Purchase Agreement - i.e., a long-term, bilateral electricity supply contract - that uses only renewable electricity generated from wind or solar power. With a Green PPA, the plant operator secures the purchase of its electricity, while the commercial or industrial customer can achieve its environmental goals thanks to the green power.
A special form of Green PPA is the on-site PPA, where there is physical proximity between the generation plant and the customer.
A financial PPA - also called a synthetic or virtual PPA - decouples the flow of electricity from the flow of money. Here, too, producers and consumers agree on a price per kilowatt-hour, but the electricity is not delivered directly from specific plants to the consumer. Instead, a service provider takes the electricity into its balancing group, trades it on, and procures the right feed-in profile for the consumer.
Synthetic PPAs also use contracts for differences (CfDs). This involves compensation payments if the market price deviates from the agreed PPA price.
