ABOUT POWER PURCHASE AGREEMENTS
A Power Purchase Agreement (PPA) is an agreement between an electricity generator and a power purchaser, generally a power utility company, to trade power that is produced for the spot market by an Independent Power Producer (IPP). A PPA is, in other words, a legal contract between a power seller and a power buyer. A PPA or IPP agreement is usually a long-term contract for a concession project for an IPP or a Build-Own-Transfer (BOT). A PPA can therefore be viewed as an instrument to facilitate the sale and purchase of electrical power on the spot market.
ADVANTAGES OF A POWER PURCHASE AGREEMENT
Guarantees for quantities and price: projected revenues of a project can be uncertain and so some guarantees as to the quantities purchased and price paid are required to give the project a viable protection from cheaper or subsidised domestic or international competition. For example, when a neighbouring power plant is producing cheaper power.
Certainty of revenue: for example, a government will want to understand how much it will be paying for the power and they will also want the first call on the power when necessary. A utility company wishes to secure the power supply.
Reduce CAPEX: organisations with a commercial, industrial, institutional or governmental background can find ways to monetise operations that traditionally have been cost centres.
Producing and providing from one source: the IPP is the owner of the power project and not only generates but also provides power to the buyer.
WHY CHOOSE ENERGYST AS YOUR PPA POWER SUPPLIER
Energyst can design, build, operate and maintain these power generation facilities, allowing our customers to benefit from stable and reduced utility costs and to gain a new source of revenue without adding to below-the-line expenses. Energyst has the capacity and knowledge to work with power utilities and PPA’s. We have vast experience in supplying IPP (Independent Power Production) solutions across the globe. Rather than simply renting out a single genset or a power plant, Energyst can create its own power plant and provide power to the electricity network. Power production depends on the demand from the network administrator. There is no fixed price and the costs are paid per MW or MWh.
With our extensive power generation equipment, we can deliver all kinds of energy and power solutions. The CAT diesel and gas fuelled IPP power modules in our fleet – ranging from 1000-2000 kVA modular units up to multi-megawatt power plants – are specially designed for PPA/IPP power projects. They are safe, reliable and efficient and meet the highest environmental standards. You need a reliable power source when facing challenges in power supply. With the use of our power generation rental equipment, Energyst can create and support for all kinds of power networks.