Corporate Power Purchase Agreements

/Corporate Power Purchase Agreements
  • Day:

    11 April
  • Start Time:

    11:00 AM - 12:30 PM
  • Stream:

    Applied Energy Storage

A number of large-scale corporate PPAs have recently been announced in Australia. These present opportunities to provide revenue certainty to renewable energy developers while providing benefits – including cost certainty – to large energy customers. Examples include the Melbourne Renewable Energy Project, Emerald Solar Farm, Sunshine Coast Solar Farm, and Sun Metals Solar Farm. In order to secure corporate PPA contracts, project developers must understand customer needs and drivers and be prepared to engage with their procurement processes. (See graphic below). Customers motivations may be to mitigate fluctuating retail prices, achieve lowest cost of energy, to drive renewable energy uptake, achieve carbon neutrality, deliver local economic activity and investment, local community benefits, or any combination of the above. These will shape the likely contract structure and procurement evaluation criteria.

 

Customer needs will influence the type of contract structure that the customer will seek. Contract structures will have implications for project developer revenue streams, ability to secure finance and level of complexity in delivery. Contract structures include:

 

– Customer owned power plants,

– LGC offtake agreements,

– bundled LGC and retail supply agreements,

– contracts for difference.

 

The presentation will briefly provide an overview of these and discuss how they can provide benefits to customers and suppliers.  Finally, some brief observations about engaging with procurement processes and tips maximising likelihood of success.

 

3 key takeaways from this presentation:

1. Large-scale corporate power purchase agreements present significant opportunities to large customers and project developers.

2. There are a variety of contract structures available to customers and suppliers. The presentation will provide an overview of these.

3. Sealing the deal requires delivering on customer needs and procurement processes. The presentation will provide an overview of these.