Power Purchase Agreement

Help create demand for Australia’s renewable future

Secure your energy supply and take advantage of long-term value with a 10-year Power Purchase Agreement.

Power ahead by purchasing energy linked to wind and solar power projects across Australia. With a Power Purchase Agreement, you have the confidence of reliable energy and long-term pricing.

How do Power Purchase Agreements work?

1. A Power Purchase Agreement (PPA) begins with a business committing to pre-purchasing up to 100% of their energy usage via a renewable energy project.
2. If green credentials are desired, you can purchase an allocation of renewable energy certificates (LGCs) generated by the renewable energy project – offsetting your grid consumption with renewable energy added to the grid on your behalf.
3. The business’ energy rates for the renewable energy component are then locked in at transparent prices – for up to 10 years, with the balance firmed by the wholesale market.

Key contract features

• Source up to 100% of your electricity volume virtually from renewable energy project(s)
• Price certainty on the renewable generation costs for the period of the PPA
• Support from a dedicated Client Solutions Manager of your account
• Intelligent technology included in your energy contract, to manage and monitor your energy
• Terms and conditions designed to fit your business
• Option to include energy advisory services to improve the way you use energy
• Your energy contract creates more demand for renewable energy, meaning more investment in building renewable energy generation

What is a Power Purchase Agreement?

A Power Purchase Agreement (PPA) is a 10-year commitment to energy offtake equivalent from renewable energy generation projects.

DID YOU KNOW?
No matter who your provider is, it’s important to note electricity from the grid is typically the same. Renewable energy generators (such as Flow Power) and fossil-fuel generators both export electricity to the grid, which is then distributed to you. In the process, it is combined and as a result, you can’t choose to use renewable energy only.

Flow Power’s PPA presents a solution for businesses wanting to go greener by establishing a virtual link between ene rgy consumers and renewable energy generators.

Under these arrangements, you pay for a proportion of the clean energy a renewable generator puts into the grid. Once the capacity of that generator is sold out, demand increases for another to be built.

With a PPA, you can also secure the rights to the green certificates the renewable energy generator is entitled to receive, called Large-Scale Generation Certificates.

Purchasing LGC’s with your Power Purchase Agreement allows you to recognise an equivalent amount of your energy consumption as having zero emissions. In effect, the clean energy they put in ‘nets out’ the mixed-source energy you draw from the grid.

The benefits for your business

1. Low-cost electricity – with a PPA you’ll be able to take advantage of the falling price renewables. With this long-term electricity contract, you can be protected against wholesale market price volatility.
2. Helping to achieve your business sustainability goals.
3. Understand where your energy comes from – in a traditional electricity contract, you have no visibility on who generated your energy or how it was generated.

With a PPA, you buy energy linked to a renewable generator. So, you can choose who generates the electricity added to the grid and the renewable source that best suits your business.

Choosing a generator to virtually link to

You can choose a generator that best matches your business’ time-of-use energy needs by leveraging wind, solar or both to suit your energy consumption.

If the bulk of your energy consumption is in the middle of the day (when solar is abundant and drives the electricity price down) – a solar PPA could be a perfect fit. For non-daytime hours of use, wind supplies consistent power throughout the evening to dawn periods. Together, both sources work to keep prices down.

Choosing a renewable energy project in your state will also help support local communities and create new employment opportunities.

Flow Power has a portfolio of Wind and Solar Farms across Australia.