What is a power purchase agreement?
A corporate power purchase agreement (PPA or CPPA) with Ørsted creates a relationship between your company and one of our green assets. Usually lasting for 10-20 years, the agreement covers your consumption with a specific volume of green energy at a fixed price. This volume can – but doesn’t have to – cover 100 % of your consumption.
The relationship between a renewable energy source and your business doesn’t involve a direct, physical connection. Instead, it guarantees that the energy that you offtake from the grid can be traced back to a specific wind or solar farm that feeds the equivalent amount of energy into the grid. This is evidenced with certificates.
- A renewable PPA is a long-term power contract between a customer and Ørsted.
- The customer buys renewable power and certificates from one of our renewable assets.
- The customer receives the corresponding number of certificates from the renewable asset to validate that the electricity bought comes from the same renewable source. We issue certificates for every single MWh generated.
- Certificates support your scope 2 GHG (greenhouse gas emissions) reporting.
What are the benefits of an Ørsted PPA for your business?
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Reduce your carbon footprint
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Be compliant and increase your sustainability profile
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Enter an agreement with an experienced partner
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Creditworthiness
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Scale and flexibility
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Budget with confidence
With great power comes green responsibility
Depending on the type of agreement, your Ørsted PPA will guarantee demand for the output of one of our existing renewable power assets, or it can help make a new project financially viable - your contribution to increasing the world’s total renewable energy capacity.
The role of your energy supplier
Entering a PPA with Ørsted doesn’t entail switching energy supplier. With a sleeved PPA, you can keep your current energy supplier or switch to a different one in the future. With this type of agreement, your supplier handles the final shaping and delivery of the power, while we handle the generation, price, and certification.
FAQs
Here, we answer the most frequently asked questions about power purchase agreements. And if you want to find out more, get in touch.
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What are megawatts (MW), gigawatts (GW), and terawatts (TW)?
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What is a megawatts hour (MWh)?
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What do these other acronyms and terms mean?
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What´s the difference between a physical PPA and a virtual PPA?
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What are the advantages of a PPA vs certificates?
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How is the power delivered from Ørsted to my business?
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Why choose Ørsted
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Does it matter which energy source I get my PPA from?
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What happens if there´s no wind?
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Can I claim a reduction in emissions from PPA?
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Is there a lower limit for the volume of energy my PPA covers?
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I want to enter a PPA with Ørsted. How do I get started?
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What is additionality in the renewable energy industry?