Power Purchase Agreements

Market sustainably generated energy profitably without subsidies - green power marketing without subsidies thanks to PPAs. 

Are you planning or building a renewable energy plant, for example a ground-mounted solar plant? Are you evaluating the economic viability of your wind,solar or biomass farm and would like to operate without government subsidies? You want to sell your green electricity at market prices and are looking for an experienced partner as a marketer (offtaker)?

Greenfield Power Purchase Agreements (Greenfield PPAs) are already often an ideal solution for new green energy facilities with a capacity of 20 MW or more. Falling electricity production costs - especially for solar plants - rising electricity prices in the long term, low auction results, rising CO2 prices and an emerging demand from industrial companies ensure that plants can be profitable even without government subsidies.

Our green electricity offer

Combined wind and solar park.

At Vattenfall, we have extensive experience with green electricity in various forms across many geographical locations. We work with both subsidised and unsubsidised projects which can be from a variety of technologies and plant age.

We would be happy to support you with our expertise:

  • Electricity trading
  • Guarantees of origin ( REGOs )

We would be happy to discuss the individual marketing requirements of your solar or wind park with you, starting from a total portfolio size of approx. 20 MW.

What do PPAs offer you?

With a Power Purchase Agreement, we guarantee you the purchase of your green electricity and certificates and remunerate it in accordance with the contractual agreement over the entire term of the contract. This allows you to avoid fluctuating or unpredictable electricity market prices and enjoy planning security for your electricity revenues. A PPA can be an important basis for your investment decisions and negotiations with financiers and banks as early as the planning and project development phase.

How does it work?

We take 100 percent of the electricity from your wind or solar park "as produced" or "as forecast". Various pricing models are possible:

  • Fixed price for each megawatt hour produced
  • Fixed price for an agreed volume
  • Combination of fixed price and variable share, e.g. based on the spot price.

Guarantees of origin are delivered to Vattenfall based on the volume of electricity generated. The contract term can be one to ten years, or even longer, depending on the option.

We take care of all downstream energy management processes after pure delivery - including marketing risks, balancing group management, market communication, billing and REMIT notifications.

Who benefits from PPAs?

For investors, a PPA makes the investment decision easier, because we take over all energy management activities after the delivery of electricity. For consumers, PPAs are a big plus, because industrial customers receive "real" green electricity from a specific regional plant. In this way, companies meet their environmental goals and promote the expansion of renewable energies . whilst providing them with an excellent marketing opportunity. Last but not least, the environment also benefits, because PPAs guarantee the profitability of a plant or park and thus promote the expansion of renewable energies.

Services and advantages at a glance

  • Purchase of 100 % of your wind and solar power "as produced" / "as forecast
  • Delivery of guarantees of origin based on the amount of electricity generated
  • Protection against fluctuating electricity market prices and thus planning security for electricity revenues
  • Assumption of all energy management tasks for marketing the electricity
  • Flexible pricing: fixed and / or variable
  • Contract term: 1 to 10 years, or longer if possible
  • Focus on UK, Germany, Netherlands, Denmark, Sweden, Finland, Norway, France
  • As a 100% state-owned Swedish company, Vattenfall is an experienced partner with a strong credit rating 

We develop optimal concepts for your needs

No matter whether you are an investor or operator of wind power and photovoltaic plants, manage the energy needs of an industrial company or are responsible for hedging for municipal utilities or regional suppliers.