The energy sector is characterized by volatility and the intrinsic urge to act in order to position itself in a future-proof and sustainable manner, combined with a wide range of regulatory requirements. Even more reason for everyone involved to strive for continuity and planning security. Power Purchase Agreements (PPA) are individually negotiated, long-term electricity supply contracts and support companies in the procurement of green electricity in this dynamic environment – regardless of which part of the energy value chain the company is in.
Ideally, the fixed and detailed contracts agreed are in line with the company’s climate strategy and make it possible to invest in renewable energies and reduce the CO2 footprint at stable prices. Companies with high electricity requirements can use guarantees of origin for renewable energy to improve their sustainability rating and achieve their sustainability targets.
As a comprehensive partner, we support producers and energy suppliers as well as energy consumers and industrial companies on their way to the right PPA. Depending on the individual requirements, needs and prerequisites, we assist with the design of the Power Purchase Agreement and find a tailor-made solution for all challenges.
“PPAs offer a reliable way to decarbonize electricity-consuming and producing companies, therefore they should be considered in every sustainability strategy. They have great potential for climate protection.”
We support you individually on your route to the successful introduction of a PPA.
We identify inventory and requirement profiles so that you can find the right basis.
We define the appropriate framework so that you can make clear decisions.
We provide you with legal and strategic support on both sides of tendering processes.
We help you make the right choice and conduct successful price and contract negotiations.
Once you have made your decision, we will legally implement the specific pricing and contract design.
After the introduction of a PPA, we continue to support you in your operational business.
The path to net zero for electricity producers and consumers takes different routes, but a significant part of the route can be taken via PPAs. They play a central role in the energy mix for decarbonization, but must be coupled with other measures and a holistic strategy. These include optimizing energy consumption, implementing energy efficiency programs and smart grid solutions, using energy storage systems and promoting research and development in the field of green technologies.
At the same time, power purchase agreements offer great economic potential for producers. They can use PPAs as marketing vehicles to open up new markets. They benefit from long-term and sustainable customer relationships and very close cooperation with the respective buyer. In addition, the targeted expansion of renewable energies must be financed, which is where PPAs help to secure financing and the bankability of projects.
However, PPAs are far more than just a contract or marketing vehicle: They are a resilient measure for greater sustainability and thus help to improve the respective sustainability rating. They therefore enable green market positioning and help to strengthen the company’s reputation.
“PPAs are not standard solutions, but transformation projects. They have to be adapted to local regulations, market rules and strategic requirements. This is only possible with experience and expertise.”
PwC analysis of the new regulatory changes in energy trading with a focus on algorithmic trading and the corresponding risk management.
PwC analysis on the role of battery energy storage systems (BESS): How battery storage can increase grid stability and efficiency in the European energy market.
Renewable energies, their development in Germany and corresponding PwC services.
Everything on the current status of the energy transition. Are we on schedule? Where do politics and business need to improve? What investments are still needed to achieve net zero?
Director energy transition and decarbonization, PwC Germany
Tel: +49 30 2636-4968
