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Power Purchase Agreements
A Power Purchase Agreement (PPA) is an agreement to buy an agreed amount of power directly from a generator for a period of time. Usually between 7 to 25 years.
The main benefit is being able to buy an amount of power for a longer period of time, lowering your energy risk strategy. Additionally, the rates are traditionally lower than market rates.
Furthermore, PPAs provide 100% green energy. This fits in well for greenhouse gas reporting protocols.
In October 2019, TEC established the first public sector PPA of its kind in the UK. A selection of our members signed up to the ground breaking deal, resulting in a 10 year fixed price deal.
We collaborated with four wind farms; Alltwalis, Andershaw, Baillie and Berry Burn. As a result of this partnership, we are saving our members an estimated £6 million.
Recently, 23 new onshore wind farm PPAs were agreed by Aviva Investors. This is not the only private PPA agreement, back in 2014 BMW agreed to a 20 year PPA. Following this, Lyreco also agreed a 20 year PPA which resulted in over £53,000 of savings in annual electricity spend. It also made the distribution side carbon neutral.
For more information on PPAs, head over to EVOENERGY and New Power
