What is a power purchase agreement?
Ørsted’s corporate power purchase agreements (PPAs, also known as CPPAs) offer a long-term supply contract of renewable power at a fixed price, giving you certainty on both your cost of power and its origin.
Green power from our wind and solar farms
The PPAs Ørsted offers are covered by the output from our own renewable energy assets. Depending on location, this could be an offshore wind farm, onshore wind farm or solar farm.
By signing a PPA with Ørsted, you’re supporting our mission to build out and scale up renewable energy around the world. 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.
Recognition for meeting renewable electricity targets can also enhance an organisation’s reputation and brand leadership and meet their public sustainability goals.
Ørsted’s Corporate PPAs are 100 % backed by renewable energy assets, such as an offshore wind farm, providing stable access to clean energy.
How does a PPA work?
A corporate power purchase agreement 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.
- 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 Renewable Energy Guarantees of Origin (REGOs) certificates from the renewable asset to validate that the electricity bought comes from the same renewable source.
- Certificates support your scope 2 GHG reporting.
A relationship with one of our green assets
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, which we issue for every single MWh generated.
A green PPA is more than just a certificate
While it’s possible to buy certificates to cover your normal energy supply, the price for these certificates is as volatile as the energy market it represents. By contrast, a PPA linked to one of Ørsted’s generating assets fixes the price of every certified MWh we supply to you, so you know exactly what you’ll be spending on your green power supply for the next decade or more.
Ørsted’s corporate PPAs come with a certificate for every MWh purchased. The certificates prove that the electricity purchased is renewable and comes from a specific renewable energy asset, for example a wind farm or a solar farm, which supports your scope 2 GHG (greenhouse gas emissions) reporting.
With Ørsted’s operational and upcoming renewable energy projects we can structure long-term offtake agreements to match your demand and renewable energy goals.
With great power comes green responsibility
When you choose to partner with Ørsted, you’re making a positive step to show that you support the global transition to a better energy future.
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.
PPAs across borders
If your business operates in several countries, or a country without an Ørsted wind or solar farm nearby, it may be possible to cover your energy needs with a cross-border PPA. Thanks to the connections between the national grids in many countries we are often able to transport power generated in one country into another country for consumption.
PPAs from the leading offshore wind provider
We offer green corporate PPAs across our global footprint in Europe, North America, and the Asia Pacific region.