In LoGOs Energía, we look ahead with energy. For this reason, and according to our innovation-based philosophy, we support and base our work on new technologies, digitalisation, and the regulation of the energy sector. A vision within which we highlight the PPA as the star product of the energy of the future.
What does PPA stand for?
The Power Purchase Agreement (PPA) is a long-term clean energy purchase agreement (five or more years) between a generator and a buyer that usually needs a great amount of electricity or a marketer that will resell the energy.
The buyer is in charge of buying the energy which, in turn, he or she sells to the final consumer through a PPA contract that sets the terms and conditions of the energy purchase.
Specifically, the PPA collects the operation starting date and the date in which the energy is delivered, as well as the related payments.
What advantages does it have?
PPA contracts are beneficial for both parties. The generators make sure there is a stable sales price during a long period while the energy marketers secure the costs of the supply.
This way, the PPA allows for investments in bigger projects, such as a wind farm because the sales price is fixed, which gives more security to its investors in the projection and planning of the future given the stability of its costs.
In addition to being economically profitable due to the competitive prices, 100% green energy reduces the use of polluting sources and ensures a reliable electric supply.
What impact does it have on renewable energies?
PPAs are the future for the building of new renewable energies installations, because their time period and fixed costs allow renewable energy producers to access great funding, reduce uncertainty and, in consequence, invest in the renewable energies sector.
The long-term PPA contracts have grown worldwide in the last year and are the star product of the future of the energy sector given the numerous promotions that renewable energies have, the great amount of resources that can be taken advantage of, and all the benefits that they bring for both the business sector and the environment.
In LoGos Energía, we guarantee the long-term renewable energy supply to both factories and SMEs, as well as households. Contact us and join the energy efficiency and sustainability. #WeLookAheadWithEnergy, responsibility and commitment.