Power Purchase Agreements (PPAs)
Many companies are working to reduce their carbon emissions. Procurement of lower carbon electricity can be a key factor in this endeavour. GETEC ENERGIE supports commercial energy customers in finding the lower-carbon electricity product that makes the most sense for them. Consumers have the option of purchasing wind or solar power - in the form of power purchase agreements (PPAs).
We look forward to working with you.
Transparent procurement of electricity from renewable sources with Power Purchase Agreements (PPAs)
Power Purchase Agreements (PPAs) can be an attractive solution for industrial companies and other commercial energy customers seeking greater transparency in their energy procurement. PPAs enable commercial and industrial electricity consumers to (indirectly) procure power from specific wind or photovoltaic facilities (see the next section for a more detailed explanation of how this works).
We offer customized short-term Customer PPAs with flexible quantities and starting times.
At GETEC ENERGIE we are convinced that Customer PPAs can be a suitable procurement method for industrial and multi-site customers of various sizes and with individual needs in terms of contract duration, starting time and quantities. In contrast to many competitors, we offer the supply of energy from renewable sources via Customer PPAs for quantities starting at 1 GWh. Also, in terms of timing we are flexible: Not only do we offer Customer PPA terms starting at 1 year, our customers can also commence their power supply via a Customer PPA any time – not only at the beginning of each delivery year.
Renewable power (or so-called “Green” power) from EEG 20-plus plants contributes to the conservation of resources.
Electricity from wind farms, which is sold in the form of PPAs, in Germany often comes from EEG 20+ plants. After 20 years of funding, the EEG 20+ wind farms are no longer eligible for subsidies, so their operators need to find alternative marketing channels. OTC-contracts (“Over the counter”) between operators and offtakers, such as PPAs, can be an optimal solution for both parties. By marketing the electricity generated by wind farms that are no longer subsidized, the producers can maintain the economic viability of the wind farms and avoid the need for their decommissioning. This approach can help to conserve valuable resources that would otherwise be needed to construct new wind farms.
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ESG-reporting obligation: PPAs can make a valuable contribution to reducing scope 2 emissions.
In 2023, the European Union implemented the Corporate Sustainability Reporting Directive (CSRD), mandating sustainability reporting for companies falling within its scope. As part of the reporting obligation arising pursuant to CSRD, companies must provide information on their gross Scope 2 greenhouse gas emissions, among other things. This refers to the greenhouse gas emissions resulting from a company’s consumed energy, whether externally purchased or acquired. The chart on the left shows that the scope 2 share of total emissions can vary greatly from sector to sector. The purchase of electricity linked to renewable sources can, in some circumstances, contribute to a reduction in a company’s greenhouse gas emissions. In the context of PPAs, the use of electricity linked to renewable sources can be disclosed with reference to the exact asset which generated the energy.
PPAs enable planning and supply security.
Another advantage of PPAs that should not be underestimated is the long-term planning security and fixed prices that this procurement type – with GETEC ENERGIE as intermediary – offers both commercial electricity consumers and generators. Especially in times of major price fluctuations on the energy markets, reliability has become another convincing argument for procuring electricity linked to renewable sources via PPAs. Renewable energies can make an important contribution to the decarbonization of the economy, and are also an important component of security of supply.
Upgrading of residual quantities with „green“ GOOs
Adjusting the electricity consumption of industrial companies or other commercial consumers to the weather-related volatile generation profile of wind or photovoltaic systems is often a challenge. We offer our customers the option of being fully supplied with electricity from renewable sources at all times. In order to be able to do so, we sell surplus electricity volumes elsewhere without the so-called “green” attribute purchased with the GOOs under the PPA. These GOOs can then be used in times of a shortfall of power from renewable resources. This is commonly referred to as “greening of residual quantities”. Read more about it here.
Many advantages, high complexity
Despite all the advantages described, PPAs remain complex contracts. GETEC ENERGIE supports its customers with structuring a PPA: This includes tasks such as forecasting or balancing energy risks. Also, finding the right PPA partner is often challenging, as supply and demand can be difficult to match. As an aggregator, we can help to bundle offers, which is particularly advantageous for consumers with high energy requirements in order to reduce complexity.
We maintain long-term relationships with system operators.
Through our joint venture GEWI GmbH which focuses on direct marketing, we maintain long-standing relationships with operators of photovoltaic and wind farms. This enables us to optimally match supply and demand. Thanks to GEWI, we can reliably supply the high demand for “Customer PPAs”.
Your advantages with us
Flexibility
Profit from short-term PPAs with flexible quantities (from 1 GWh) and starting times.
Transparency
Be able to disclose the assets you are supplied from.
Competence
Benefit from the experience of proven energy market specialists.
Reliability
You can rely on us as a partner with a long-term perspective.
Other services
Most of the energy which GETEC ENERGIE sells to its commercial and industrial customers is derived from conventional sources. Please click here for more information on those products:
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