Foundations for success
Power Purchase Agreements and cross-border price risks
Request a copy
Green Energy Procurement White paper. Corporate power-purchase agreements (PPAs) are a valuable and increasingly popular means for funding renewable energy. A properly structured corporate PPA contract delivers wins for both sides. Corporate buyers gain long-term security in their energy supply with predictable costs plus a way to reduce their carbon footprint and boost their environmental credentials. For renewable energy projects, PPAs represent a bankable revenue stream providing potential investors with confidence in their return on investment and thus helping to secure finance – particularly as governments around the world look to phase out subsidies.
In this paper, we look at how this risk arises and how to evaluate it to enable informed decisions about cross-border PPAs.