Sale of power

 

European Energy has a large project portfolio and a substantial development pipeline. By entering into Power Purchase Agreements (PPA) we are able to offer corporations and utilities green power from wind and solar farms.

European Energy have a long track record and extensive experience in the field of PPAs. This means we are able to ensure that our customer gets full benefits of signing a PPA with us and we recognise that each customer have individual needs.   

Our Power Purchase Agreements take two primary forms – private or synthetic. The best structure depends on the markets where our customer and our projects are located, as well as the goals, priorities, and risk appetite of our customer.

 

Private PPA
Private PPAs are most commonly used by organisations that have heavy, concentrated load. This is because under a private PPA, the seller delivers renewable electricity to the customer, who actually receives and takes legal title to the energy. 

  • Our customer is directly connected to European Energy’s renewable facility and the renewable facility is located in close proximity to our customer
  • No need for external balancing and trading services if all electricity is consumed by our customer
  • Potential cost savings for our customer in terms of electricity taxes, grid fees etc.
  • Typically, the whole output of the renewable facility is delivered to our customer
  • Our customer may be required to be the owner of the plant in order to maximize the benefits

Synthetic PPA
A synthetic PPA is a financial contract rather than a contract for power.  Our customer does not receive the electricity directly and in this way, it is a “synthetic” Power Purchase Agreement.

  • Our customer is not connected directly to our renewable generating facility
  • Our customer purchases power from the public grid and European Energy's renewable facility sells power into the public grid
  • Bilateral power price adjustment mechanism between European Energy and our customer ensures that our customer pays a fixed price pr. unit in the entire term of the agreement (contract-for-difference)
  • Any Guarantees of Origin/certificates produced by the renewable facility can be delivered to our customer

 

Why enter into a PPA?

PPAs are a long-term hedge against the risk of fluctuating energy prices
Prices for traditional energy sources are notoriously subject to market volatility. Renewable power purchase agreements protect our customers from that variability. Because wind and solar energy generation require minimal maintenance costs after installation, our customers benefit from steady, predictable costs that can be specified up front in a PPA contract. This creates a winning scenario for our customers, whereby committing to low renewable energy prices via a PPA decreases financial risk from rising electricity prices in the future.

We offer a fixed power price during a period of up to 20 years or a price premium. Our customers are not exposed to fluctuating power prices, and our asset management team ensures that the farm delivers the expected output.

Locking in a long-term renewable energy deal creates an opportunity for future profit
Unlike the traditional process of purchasing energy from a local utility, renewable power purchase agreements help our customers capture the best energy price on the market by allowing access to a much wider range of energy providers. Through a synthetic PPA, European Energy can partner with organisations looking to make a long-term commitment to renewable energy. Our customer pays European Energy through a 10-20 year contract to bring new sources of renewable energy to the grid in exchange for energy attribute certificates (EACs) – more commonly known as renewable energy credits (RECs) in North America, GOs in the EU, and I-RECs or TIGRs in developing international markets. Once the renewable project is online – selling energy to the grid – proceeds for the duration of the contract go to our customers. Herein lies the most compelling argument for buying a renewable PPA: the opportunity to secure future financial gain from a commitment to renewable energy.

PPAs are one of the fastest ways to reach sustainability goals and add new renewable energy to the grid
PPAs put clean energy into the electric grid, and our customer owns all the environmental benefits (green certificates or carbon offsets) associated with its portion of the project. PPAs from wind or solar farms have zero emissions and can be applied to most market-based reporting methodologies.

Onsite generation and the use of certificates to mitigate emissions can only take an organisation so far when it comes to sustainability and renewable energy targets.  While there is a limit to the number of solar panels you can install on your roof, long-term energy purchase through power purchase agreements has no cap. Our customers can, therefore, meet renewable energy targets in a cost-effective and reliable manner using synthetic PPAs. And, if the PPA is with a new project, our customers can easily and credibly claim “additionality” which, in its mostly widely-accepted definition, means directly causing a new renewable project to be built.

We are able to offer true additionality from some of our farms. It is thus only our costumers’ decision to enter into a power purchase agreement, that ensures new wind or solar capacity is added to the grid.

PPAs supports your image
PPAs are a well-understood renewable energy story to share with internal and external stakeholders. They also move the needle on a double bottom line – helping to achieve important corporate environmental goals while also saving money, which makes for powerful brand and marketing narratives. And because our customers own the certificates, they can make marketing claims and report on greenhouse gas reductions.


Visit our project portfolio to learn more about some of the projects we have already realized.

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 In a private PPA our customer is connected directly to our renevable energy facility

In a private PPA our customer is connected directly to our renevable energy facility

 

 In a synthetic PPA our customer purchase power from the public grid and European Energy supply power to the public grid and a contract-for-difference ensures mutual benefits, 

In a synthetic PPA our customer purchase power from the public grid and European Energy supply power to the public grid and a contract-for-difference ensures mutual benefits, 

 
 Interest in learning more about a PPA with European Energy?  Contact Jens-Peter Zink, responsible for European Energy's commercial activities by phone: (+45) 20 47 82 20 or email: jpz@europeanenergy.dk for more information.

Interest in learning more about a PPA with European Energy?

Contact Jens-Peter Zink, responsible for European Energy's commercial activities by phone: (+45) 20 47 82 20 or email: jpz@europeanenergy.dk for more information.