Green power purchase agreements

Opportunities for businesses and for driving the energy transition

Do it like Google does. The company achieved its “100 per cent green electricity” objective at the end of 2017. This was made possible by green corporate power purchase agreements (PPA), through which the company generates approximately three gigawatts of capacity. Green PPAs guarantee companies clean energy at an agreed price and make a visible contribution towards the energy transition.

Clean energy at an agreed price

The infographic explains the PPA principle. PPAs are long-term supply contracts in which innogy guarantees to supply energy from renewable sources at a fixed price. Green PPA may be set up as either virtual or physical PPA.

Green PPAs can be flexible, but always ensure a supply with green electricity

The corporate PPA principle: businesses enter into an electricity supply contract directly with the electricity generating company. It supplies them with green electricity at a fixed price for a duration of five, ten or more years. A green PPA can be devised as required, either as a direct PPA with physical supply or as a virtual PPA. These are financial products and the electricity is traded on the energy market.

What they all have in common is a long-term fixed price arrangement and energy that is generated from renewable sources. Whether it is wind, sun or hydropower – you decide what suits your company best.

Green PPA in detail

A win-win situation

Green corporate PPAs benefit everyone involved: businesses make a long-term investment into their future with green PPAs, because the contracts give them room to manoeuvre in terms of their finances and improving their CO2 balance. That is not just good for the environment, but also for the company’s image and makes it more attractive for the capital market.

However, energy companies who generate energy from renewable sources also benefit from the agreements. Long-term electricity supply contracts guarantee that a company will be supplied by a particular energy supplier for five, ten or fifteen years and thus lower the risk of investments in new assets. This reduces capital costs and increases creditworthiness.

In addition, green PPAs benefit society as a whole, because they lead to reduced CO2 emissions and drive the transition of the energy industry.
Make a significant and visible contribution towards the energy transition with us!

Green PPAs – energy supply of the future

Download our PPA flyer

Make a long-term commitment to green electricity together with innogy and reap the benefits. All benefits and all the information at a glance.

Why choose innogy as a partner?

innogy is your reliable supplier of green energy and we would supply you in such a way that you can focus completely on your core business. 

Our products are designed holistically: innogy sees itself as a driver of the energy transition. Accordingly, we develop our products in close collaboration with internal experts. We are therefore familiar with the particular conditions in the energy market and look back on many years of experience with renewables. 

We use our expertise to develop green power purchase agreements that are tailored to your particular needs and take into account potential risks and side effects. 

Green PPAs at innogy
Giorgia Carchitto, Head of Commercial Development innogy
Businesses will only actively engage in climate protection if it is profitable for them. It is our job to support them.
Giorgia Carchitto, Head of Commercial Development innogy

PPAs for every need

Corporate PPAs are becoming more and more popular; the total capacity in 2016 amounted to more than 4.3 GW worldwide. That is about the same as the total capacity of four nuclear power plants, but already more than twelve times the output of 2008. Most of the power is produced and sold in North America. However, demand in Europe is also on the rise. Here in 2016 alone, contracts for a capacity of more than one gigawatt were signed – almost three times as much as in the previous year.

Three benefits of power purchase agreements: long-term partnerships save costs and work, green electricity at a fixed price reduces the climate footprint and enables the business to plan more securely. Since the product is highly flexible, it can be readily adapted to your individual needs.

Three benefits of power purchase agreements: long-term partnerships save costs and work, green electricity at a fixed price reduces the climate footprint and enables the business to plan more securely. Since the product is highly flexible, it can be readily adapted to your individual needs.

The benefits of green PPAs will also have a positive impact on your company. You can choose between different contract versions. What they all have in common are
long-term fixed prices and investments in renewables.

Inside view of a hydroelectric power plant: physical PPAs guarantee that businesses are supplied with green electricity directly from the generating company.

Physical PPAs

Companies buy green electricity directly from the generating company at a fixed price. They produce energy especially for this purpose.

Hand with pen edits several charts. Virtual PPAs are financial products and guarantee a fixed price for green electricity like a derivative instrument.

Virtual PPAs

Virtual or synthetic PPAs are financial products that do not include a physical supply with electricity. Here, as usual, energy is traded on the market – different models make long-term fixed prices possible.

Your contact for more information on PPAs:

Contact Corporate PPA: Willemsen

David Willemsen

+49 201 12-14023

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Learn more about PPA

Innovation PPA

PPAs at innogy

PPAs in detail

Frequently asked questions