Many companies today would like to Power consumption with green electricity as this is more sustainable, cheaper and easier to plan. A clever solution for this is a so-called Corporate Power Purchase Agreement (PPA), i.e. a Long-term electricity supply contractthat companies conclude directly with an operator of solar parks or wind turbines.

What is a corporate PPA?

A Corporate Power Purchase Agreement (PPA) is a contract that a company concludes with a generator for the supply of electricity. Supply of a defined quantity of electricity closes - at fixed conditions and for a certain periode.g. 5 or 10 years. The electricity comes from from renewable sources such as photovoltaic or wind power plants. Through PPAs, the company not only receives Planning security and is protected from price fluctuations on the electricity market, but can also make the use of green energy part of his Sustainability strategy prove.

How do companies benefit from a PPA?

• Customised contract: Contracts are drawn up bilaterally and can be customised to the customer's individual requirements.
• Climate protection: Companies improve their carbon footprint, promote the energy transition and can credibly advance their own climate protection strategy.
• Image gain: Sustainability becomes measurable and visible for customers, partners and investors.
• Planning security: Price certainty has a positive effect on other investments and predictable operating costs.

What types of PPAs are there?

There are different forms of PPAs that are concluded between energy producers and companies. These four forms have now become established and can be easily differentiated:

Practical example: Ardagh Glass Packaging

The company Ardagh Glass Packaging together with Sunnic Lighthouse and the ENERPARC AG a Off-site PPA concluded in order to around 130 GWh of sustainable solar power annually to obtain.

Annelene IkemannSustainability Director at Ardagh Glass Packaging - Europe, explains the Advantages of the new electricity supply contract as follows:

"A long-term PPA such as the one we have agreed with ENERPARC and its subsidiary Sunnic Lighthouse enables us to purchase green electricity, which we use in our new NextGen furnace in Obernkirchen. Ardagh Glass Packaging Europe previously used around 90 % of gas and 10 % of electricity in conventional furnaces. In the hybrid NextGen furnace, we currently use around 60% of green electricity and 40% of gas. The green electricity supply from Sunnic Lighthouse also brings us a big step closer to our goal of switching to 100% of renewable energy by 2030."

Solar power for Ardagh is currently still being of existing ENERPARC solar parks from all over Germany (off-site PPA). However, ENERPARC is already planning an off-site PPA on behalf of Ardagh. Own ground-mounted PV system in the Proximity to the Ardagh production site (on-site PPA). In future, the company will therefore be able to directly from the nearby solar park refer.  

Why are PPAs a good solution?

PPAs are a Important driver for the expansion of renewable energies in Germany. In this way, companies invest directly or indirectly in new solar parks and create demand outside of traditional subsidy models. It is therefore a Profit for both sidesOperators of solar parks and wind farms have the following advantages through PPAs Reliable incomeand for the companies that purchase the green electricity, there are Economic advantages and an essential Progress in climate protection.

More information on the economic efficiency of solar parks

You can find more information on the economic strength of solar parks in our fact sheet.